EU Set To Greenlight Mars’ $36B Acquisition Of Pop-Tarts Maker Kellanova: Report

In June, the EU initiated an investigation into the deal, despite U.S. regulators having cleared it.

Mars’ buyout of Pop-Tarts owner Kellanova (K) in a $36 billion deal is reportedly expected to receive unconditional antitrust approval from the European Union (EU).

According to a Reuters report, citing sources familiar with the matter, the EU decision on the deal is due by December 19. In June, the EU launched an investigation into the deal, despite U.S. regulators having cleared it.

In August 2024, the family-owned confectionery maker Mars announced it was acquiring Kellanova in a deal that will bring brands such as Snickers and Pringles under one umbrella. Under the terms of the deal, Mars said it will pay $83.50 per share for Kellanova.

Kellanova stock traded 0.53% higher in Tuesday’s pre-market. Retail sentiment on Kellanova remained unchanged in the ‘bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

The EU's move to open an investigation was based on the concern that the deal could result in price hikes, as Mars’ power to negotiate with retailers will increase. In June, Reuters had noted that this might also result in Mars divesting assets to address the EU’s concerns and the risk of the deal being blocked.

According to Reuters, citing data from NielsenIQ, a combined Mars and Kellanova would account for roughly 12% of the U.S. snacking and candy industry market share.

Kellanova shares have gained 2% this year and increased by nearly 3% over the last 12 months.

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