Mars and Kellanova have announced that Mars, Inc.’s pending acquisition of Kellanova has cleared antitrust review by the Federal Trade Commission (FTC) without any conditions or required remedies.

The proposed $36 billion acquisition, reported in August 2024, has received all but one of 28 required regulatory clearances, Mars CEO Poul Weihrauch says. Antitrust review by the European Commission is ongoing.

“This brings us one step closer to uniting two iconic businesses with complementary footprints and portfolios, allowing us to deliver more choice and innovation to consumers,” Weihrauch says.

The FTC reported Wednesday it had granted early termination of its review after nearly a year of "dozens of interviews with non-parties at all levels of the supply chain (including large chains and small, independent businesses), extensive data analysis, sworn testimony from party witnesses, and the review of hundreds of thousands of documents," says Daniel Guarnera, director of the Bureau of Competition.

Guarnera notes Kellanova still sells cereal in international markets, including the European Union, after spinning off its North American cereal business in 2023.

"Our job is to protect competition and consumers in the United States," Guarnera says. "Our job is to determine whether there is a violation of American law that we can prove in court. And once we’ve concluded there is not, our job is to get out of the way.”

The European Commission says it has opened an “in-depth investigation” to assess the proposed acquisition under EU merger regulation. In a news release, the commission says it has preliminary concerns that the transaction could “lead to higher prices for consumers due to Mars' increased negotiating power towards retailers” in Europe.

Specifically, the European Commission says Mars and Kellanova have a strong market position since they offer “must-have” products for end consumers. The commission notes retailers “could be forced to accept higher prices” to continue to carry brands such as Twix, Snickers, Skittles, and Pringles, among others.

“By acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio,” says Teresa Ribera, European Commission executive vice president for Clean, Just, and Competitive Transition. “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. Our in-depth investigation will assess the transaction’s impact on the price of these companies’ products for consumers in the European Economic Area.”

The European Commission has until Oct. 31 to complete its investigation and issue a decision. With all approvals, Mars and Kellanova expect the transaction to close toward the end of 2025.

Kellanova (formerly Kellogg’s) is on the current Snack Food & Wholesale Bakery “Top 50 Snack & Bakery Companies” list. Click here to view the current “Top 50” rankings. 

Mars is on the current Candy Industry “Global Top 100 Candy Companies” list. Click here to view the current “Global Top 100” rankings.