Diving Briefs:
- After the European Union published an in -depth investigation into the merger, Mars’ Pringles Maker Kellanova’s acquisition of cash will be delayed. Mars expects the contract to close at the end of 2025.
- The European Commission, the EU’s exclusive regulatory agency, Warned a transaction in a preliminary investigation It can increase the product portfolio of Mars and provide greater negotiations with retailers. As a result, Mars can use this leverage to extract higher prices from retailers, which can be delivered to consumers.
- The transaction, which provides ownership of M & M producers of Cheez-IT, Pringles and other snacks, was announced in August and was initially expected to close in the first half of 2025. The committee conducted an investigation and made a decision by October 31.
Dive Insights:
In the food space where Megamager disappeared, the Mars-Kellanova alliance was proven as a major exception when it was first announced last August. The EU’s regulatory authorities now express “serious doubts” about transactions.
The European Commission warned that the merger would have a strong market position in some of the EU, adding that some retailers expressed concern about the increase in Mars if they added Kella Nova’s essential brand to the existing portfolio.
“As the price of inflation hits increases throughout Europe, it is essential for this acquisition to increase the cost of shopping baskets.” “Our in -depth investigation will evaluate the effect of the company’s transaction on consumer product prices.”
In the statement, Mars has confidence in the merger and said, “We will provide more choice and innovation to consumers.”
“We were disappointed, but we are optimistic that this investigation will be solved positively.”
Kellanova did not respond to the request.
The combined Mars-Kellanova will have more than $ 63 billion and more than $ 1 billion in net sales, the company said when the union was announced.
In addition, 114 -year -old Mars will provide deeper beings to the fast -growing snack space, which will complement the exposure to sweets and sweets. Mars will also benefit from Kellanova’s larger exposure in the world of areas that are not dominant like Africa.