Mars' Purchase of Kellanova Clears Regulatory Barriers in the U.S.
Mars Inc. and Kellanova Merger Progressing Towards End-2025
Mars Inc., the renowned confectionery and snack company, is moving forward with its acquisition of Kellanova for approximately $36 billion. The all-cash deal, which is expected to close towards the end of 2025, is subject to remaining regulatory approvals, including a key antitrust review by the European Commission.
Timeline and Regulatory Status
The deal has already received approval from the U.S. Federal Trade Commission. However, the European Commission, which is the main remaining regulatory hurdle, paused its antitrust investigation in late July 2025 while awaiting additional information from Mars and Kellanova. The prior EU decision deadline was October 31, 2025, but this will be extended until the companies submit requested data and the review resumes.
Impact on the Global Snack Market
The acquisition significantly expands Mars’ portfolio into a larger global snacking market, with well-known Kellanova brands such as Pringles, Pop-Tarts, and Rice Krispies Squares joining its existing candy and snack lines like M&M’s and Snickers. This deal is expected to reshape the global snack market by creating a diversified food powerhouse.
Remaining Regulatory Clearances
The main remaining clearance is the European Commission’s antitrust approval, which is under a formal investigation due to concerns about potential price increases resulting from the merger. The investigation is on hold pending additional information from the companies.
Additional Context
In addition to the acquisition, Mars is investing $2 billion in U.S. manufacturing and product innovation through the end of 2026 to support expanded production capacity for its growing portfolio, including products from the Kellanova acquisition.
As the acquisition progresses, Kellogg Co. completed the separation of its North American cereal business, WK Kellogg Co, resulting in two independent public companies. Battle Creek, Mich. will remain a core location for the combined organization after the acquisition of Kellanova by Mars Inc.
The acquisition of Kellanova by Mars Inc. is one of the 28 required regulatory clearances, with only the review by the European Commission outstanding. It is also the largest CPG transaction since the merger between Kraft and H.J. Heinz in 2015.
Once the acquisition is complete, Kellanova will become part of Mars Snacking, headed by Global President Andrew Clarke and based in Chicago. The acquisition agreement was originally revealed in August of the previous year.
Looking Ahead
Bold new flavors and innovative twists on classics are trending in the candy and snacks market. The combined organization after the acquisition of Kellanova by Mars Inc. aims to deliver more choice and innovation to consumers, promising an exciting future for the global snack industry.
- The merger between Mars Inc. and Kellanova, a significant event in the global snack market, is progressing towards the end of 2025. However, the European Commission's antitrust approval, the main remaining regulatory hurdle, is currently under investigation and on hold.
- As the regulatory clearances for the Mars Inc. and Kellanova merger are still pending, the combined organization plans to introduce bold new flavors and innovative twists on classics to the candy and snacks market, promising an exciting future for the global snack industry.
