EU Opens Full Antitrust Probe into $36 Billion Mars–Kellanova Merger

In a major development in global competition law, the European Commission (EC) has launched a full-scale antitrust investigation into the proposed $36 billion acquisition of Kellanova by Mars Inc. The merger, combining two food giants behind globally recognised brands such as M&M’s, Snickers, Pringles, and Pop-Tarts, has triggered regulatory alarms over potential market dominance and pricing power in the European food and snack sector.

Announced earlier this year, the Mars–Kellanova deal is one of the largest food industry mergers recently. While Mars is a global leader in confectionery and pet food, Kellanova—spun off from Kellogg’s—has a stronghold in breakfast items and salty snacks. The European Commission’s preliminary review, set to conclude by June 25, 2025, has raised substantial concerns that the merger could significantly reduce competition in several product categories, leading to higher prices and fewer choices for European consumers.

Retailers across the EU have voiced strong opposition, warning that the combined entity could exert undue pressure on supply chains and demand more restrictive terms. Mars has not offered any early remedies to address these competition concerns, signalling its confidence in navigating the investigative process and increasing the risk of regulatory pushback.

Should the Commission find credible threats to market competition, it may demand structural remedies such as divestitures or, in extreme scenarios, block the deal altogether. This probe marks a critical test for the EU’s commitment to enforcing antitrust rules in the consumer goods sector. It follows a broader trend of heightened scrutiny on cross-border mergers that could reshape global markets.

The outcome of the investigation could delay the deal’s closure beyond the targeted August 2025 timeline and set an important precedent for future mergers in the food and beverage industry.