European retailers object to Kellanova takeover by Mars

In August last year, Mars announced the biggest takeover deal in the food sector in the past decade: the US family-owned company made a bid of almost 36 billion dollars (32 billion euros) to acquire listed snacks manufacturer Kellanova, known for brands such as Pringles and Kellogg’s. However, that acquisition has not yet been finalised as it awaits approval from antitrust authorities in the markets where the players operate. Only India has already given unconditional approval to the deal, Retail Detail reports citing Reuters.

Few problems are also expected in the US, but things are different in Europe, where the takeover may be subject to a major antitrust investigation, Reuters reports on the basis of sources close to the matter. European retailers are said to have objected to the deal on the grounds that Mars and Kellanova, which together account for more than 52 billion euros in sales, would become too dominant. While the overlap in product range between the two companies is limited, concentration in the food sector is already high, which would weaken supermarkets’ bargaining power.

A preliminary investigation ends on 25 June, but no conclusion is expected there yet. An in-depth investigation by the European Commission could significantly delay the completion of the acquisition unless Mars were to come up with concessions soon.