Mars Successfully Overcomes U.S. Regulatory Obstacles in the Acquisition of Kellanova
Mars Inc. has announced a definitive agreement to acquire Kellanova, the newly independent company formed from Kellogg Co., in a transaction valued at approximately $35.9 billion. The deal, which is expected to close by the end of 2025, is subject to regulatory approvals and customary closing conditions.
The acquisition, valued at $83.50 per share in cash, will unite two iconic businesses with complementary footprints and portfolios. Mars' major confectionery brands, such as M&M’S, Snickers, and Whiskas, will join forces with Kellanova's portfolio, which includes Pringles, Pop-Tarts, Rice Krispies, and Kellogg’s cereals. This merger is set to significantly reshape the global snacking and breakfast foods market by consolidating a substantial share under one company.
The deal has received all but one of the 28 required regulatory clearances. The U.S. Federal Trade Commission (FTC) approved the acquisition in June 2025, determining it does not violate antitrust laws. However, the European Commission has paused its antitrust review since late July 2025 due to delays in receiving critical information from the companies involved. The EC aims to ensure the merger does not create unfair competition or lead to inflated prices, particularly given Mars’ already dominant market position in confectionery and pet food in the EU.
Steve Cahillane, the CEO of Kellanova, stated that the acquisition by Mars Inc. represents a significant milestone in the path to combine Mars Snacking and Kellanova. Once the transaction is complete, Kellanova will become part of Mars Snacking, headed by Global President Andrew Clarke and based in Chicago. Battle Creek, Mich. will remain a core location for the combined organization.
The acquisition coincides with Mars’ recent $2 billion investment to expand U.S. manufacturing operations by the end of 2026, indicating a strategic push for growth and integration following the takeover. The deal is the largest Consumer Packaged Goods (CPG) transaction since the merger between Kraft and H.J. Heinz in 2015.
Meanwhile, reports have surfaced that ALDI Süd and ALDI Nord, German retailers who broke up in 1960, are in merger talks. The merger between C&S Wholesale Grocers and SpartanNash is also expected to enable the combined company to serve customers more efficiently and potentially lower grocery prices.
Circana has released a list of 2024 New Product Pacesetters in food and nonfood categories, with bold new flavors and innovative twists on classics taking the candy and snacks categories by storm. As the market continues to evolve, the acquisition of Kellanova by Mars Inc. promises to bring exciting changes to the snacking and breakfast foods landscape.
| Aspect | Details | |-------------------------------|--------------------------------------------------------------| | Acquisition Price | $35.9 billion ($83.50 per share in cash) | | Shareholders' Approval | November 1, 2024 | | Expected Closing Date | End of 2025, pending regulatory approvals | | U.S. Regulatory Status | Approved by FTC in June 2025 | | European Commission Status | Antitrust review paused as of late July 2025 due to missing info | | Market Impact | Consolidates a significant share in snacks and breakfast markets; potential for price and competition concerns in EU | | Mars’ strategic moves | $2 billion U.S. manufacturing investment concurrent with the acquisition |
The acquisition remains subject to final regulatory clearances and closing conditions, with uncertainty primarily around the European Commission’s ongoing review. As the deal progresses, consumers can expect a more diverse and innovative range of snacking and breakfast food options from the combined Mars and Kellanova.
Technology will play a vital role in the integration of Mars and Kellanova, as new systems and processes are implemented to ensure seamless operations between the two companies. To drive efficiencies and explore new opportunities in the global snacking and breakfast foods market, the combined organization may also invest in cutting-edge technology.
The success of the Mars-Kellanova merger will be closely monitored by competitors, who may seek to leverage advancing technology to maintain their market position or even gain a competitive edge. As technology continues to revolutionize various industries, it is essential for businesses to adapt and innovate to stay ahead in the rapidly evolving consumer goods landscape.
