Mars' Buyout of Kellanova Overcomes US Regulatory Barriers
Mars Acquires Kellanova in Billion-Dollar Deal, Shaping Global Snacking Landscape
In a significant move for the snacking industry, Mars Inc. has announced its acquisition of Kellanova, the former Kellogg Co., in an all-cash deal valued at approximately $35.9 to $36 billion. The deal, which is subject to customary closing conditions including regulatory approvals, is expected to close by the end of 2025.
The acquisition, approved by Kellanova shareholders on November 1, 2024, will combine Mars’ leading confectionery brands such as M&M’s, Snickers, and Twix with Kellanova’s strong snack and cereal portfolio including Pringles, Pop-Tarts, and Rice Krispies. The merger would create a dominant player in the global snacking and breakfast foods market, significantly expanding Mars’ footprint in both categories.
However, the deal faces regulatory scrutiny, especially in the European Union. The European Commission paused its antitrust review in July 2025 due to delays in receiving critical data. Concerns have been raised that the merger could reduce competition and lead to higher consumer prices in certain markets, notably confectionery and pet food sectors where Mars already holds a strong position. The investigation by the EU competition watchdog is ongoing, with deadlines extended beyond an initial October 31 date.
If the acquisition goes through, Kellanova will become part of Mars Snacking, headed by Global President Andrew Clarke and based in Chicago. Steve Cahillane, the chairman, president, and CEO of Kellanova, will step down following the close of the transaction.
The impact on the snacking industry is expected to be substantial. Market consolidation will create one of the largest global snacking entities, consolidating several iconic brands under Mars’ control, likely reshaping market competition and consumer choices. Rival companies may face intensified competition given Mars’ enlarged product portfolio and expanded distribution capabilities.
If antitrust concerns are addressed, the deal could accelerate innovation and scale efficiencies in the snack sector. Conversely, regulatory-imposed remedies or delays could affect the integration process.
This acquisition is marking a notable trend towards large-scale food industry mergers valued in the tens of billions, influencing investment and advisory roles in the sector.
Meanwhile, reports have surfaced that ALDI Süd and ALDI Nord, two German retailers who broke up in 1960, are in merger talks. Furthermore, C&S Wholesale Grocers and SpartanNash are expected to merge, aiming to serve customers more efficiently and lower grocery prices.
Circana has also released a list of 2024 New Product Pacesetters in food and nonfood categories, indicating a wave of bold new flavors and innovative twists on classics taking the candy and snacks categories by storm.
Battle Creek, Mich. will remain a core location for the combined organization, and the acquisition of Kellanova by Mars is the largest CPG transaction since the merger between Kraft and H.J. Heinz in 2015.
[1] Mars Inc. Press Release: "Mars, Incorporated Announces Agreement to Acquire Kellanova" (November 1, 2024) [2] Reuters: "Mars-Kellanova deal faces EU antitrust scrutiny" (July 15, 2025) [3] Bloomberg: "Mars Inc. to Buy Kellanova in $36 Billion Deal" (November 1, 2024) [4] Wall Street Journal: "EU Pauses Review of Mars-Kellanova Deal" (July 16, 2025) [5] CNBC: "Mars-Kellanova deal: What it means for consumers and the snack industry" (November 2, 2024)
The acquisition of Kellanova by Mars Inc. could lead to changes in the lifestyle and finance sectors, as the combined entity would dominate the global snacking and breakfast foods market. This merger could potentially impact the business strategies of rival companies in the snack industry, if it results in increased competition and lower prices due to scale efficiencies.
On the other hand, the ongoing EU antitrust investigation could impose remedies or delays, which might affect the integration process and, consequently, the final outcome of the deal in terms of competition and consumer prices.
In the tech world, this massive acquisition might influence investment and advisory roles in the food industry, signaling a trend towards large-scale food industry mergers. Meanwhile, other industry players are also making moves, such as the potential merger of ALDI Süd and ALDI Nord, and the expected merger between C&S Wholesale Grocers and SpartanNash.
In the realm of sports and weather, the impact of these corporate moves on the everyday lives of consumers might not be immediate, but they could contribute to changes in the retail landscape and the prices of everyday goods over time.
