A massive $36 billion merger between candy maker Mars and Pringles brand owner Kellanova is close to final approval. European Union antitrust regulators are expected to give the deal unconditional approval without requiring any concessions from the companies, Reuters reported.
The merger, one of the largest in the food industry’s history, would bring together a portfolio of world-renowned brands:
- From Mars: Snickers chocolate bars, M&M’s candy, Whiskas cat food.
- From Kellanova: Pringles chips, Kellogg’s breakfast cereals, Pop-Tarts.
Once the deal is complete, the combined company will control about 12% of the US snack and confectionery market, giving it huge market power.
The merger had previously raised concerns with the European Commission, which warned in June that the deal could lead to higher prices for consumers and unduly strengthen Mars’s bargaining power with retailers.
However, after a more in-depth analysis, the Commission concluded that there were no sufficient legal grounds to require the companies to sell assets or make other concessions to approve the deal, according to the sources.
It is worth noting that US antitrust authorities had already given their unconditional approval to the merger earlier.