US food manufacturer Mars has received approval from the US Federal Trade Commission (FTC) to buy snacks maker Kellanova, but the companies will now have to wait for the European Commission’s (EC) investigation to conclude.
The terms of the agreement agreed last August stipulate that Mars will buy Kellanova, spun off from Kellogg Co. for $35.9bn, payable in cash. The transaction was originally scheduled to close in the first half of 2025.
The FTC said Wednesday that it saw no evidence of an anticompetitive merger in the companies’ deal and was halting its review. The same day, the EC issued a statement expressing concern that the merger of Mars and Kellanova could undermine competition and lead to higher prices for European consumers.
“The Commission’s preliminary investigation shows that by expanding its product range to include popular Kellanova brands, Mars could strengthen its bargaining power with retailers,” the EC said in a statement. The EC fears that Mars could use its increased influence to negotiate higher prices, making the company’s products more expensive for consumers.
The EC says it has 90 working days (until 31 October 2025) to investigate and decide on the agreement.
A statement published on Mars’ website notes that the purchase of Kellanova has already passed 27 of the 28 necessary approvals. The company remains optimistic that the deal has been concluded and now expects it to be finalised closer to the end of 2025.