European Commission ‘stops the clock’ on the Mars-Kellanova deal decision.

(Image: Getty/Ekaterina79)

European Commission pauses review of $35.9bn Kellanova deal, citing “missing information”

Mars-Kellanova deal on hold

• European Commission pauses Mars–Kellanova merger review over missing information
• $35.9bn deal would expand Mars’ snack dominance
• US regulators approved the deal without issue
• Commission concerned about competition and food prices

The European Commission has “stopped the clock” on its October deadline to approve confectionery giant Mars’ proposed takeover of cereal and snack company Kellanova.

The deal, worth $35.9bn (€30.59bn) was first announced in August 2024, and slated to close in the first half of 2025.

And while it sailed through approval systems in the United States, with the US Federal Trade Commission (FTC) concluding it does not pose a threat to market competition, it’s faced opposition in Europe.

Known for big-name brands such as Snickers, Twix and M&M’s, Mars is already a giant in the snacking sector. But the pending acquisition of Kellanova, home to consumer favourites including Pringles and Pop Tarts, would take the multinational to new levels of dominance. And it’s this which is cause for concern for European regulators.

Also read → Mars-Kellanova deal to reshape global snacking market

Competition concerns

The European Commission announced that it would launch an in-depth probe into the proposed acquisition, back in June.

“By acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio,” said Teresa Ribera, executive vice-president for clean, just and competitive transition at the European Commission, when the investigation was announced. “As inflation-hit food prices remain high across Europe, it is essential to ensure that this acquisition does not further drive up the cost of shopping baskets.”

The Commission’s inquiry requires Mars to provide certain information to reassure regulators that competition within the sector would not be threatened.

However, it’s clear the Commission does not feel it has received this information from Mars, as a spokesperson announced it had “stopped the clock in its investigation”, effective from 28 July.

The clock can be restarted as soon as Mars satisfies the conditions prescribed by the Commission.

“The ‘clock’ in merger investigations can be suspended if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them (for its competition assessment) within a prescribed deadline,” explained a spokesperson for the Commission. “Once the missing information is supplied by the parties, the clock is restarted and the legal deadline for the Commission’s decision is then adjusted accordingly.”

If approved, the all-cash deal would become one of the biggest food industry acquisitions in history.

The European Commission, Mars, and Kellanova have been approached for comment on the latest announcement, but have yet to respond.