Confectionery giant Mars has not yet submitted any proposed remedies to the European Commission to address antitrust concerns regarding its $36 billion acquisition of Pringles-maker Kellanova, according to an update posted Thursday on the Commission’s website. The deadline for Mars to offer remedies is June 18.
Both Mars and Kellanova have not publicly commented on the matter.
Full EU Investigation Expected
According to sources cited by Reuters, Mars is unlikely to propose any remedies, paving the way for the European Commission to launch an in-depth Phase 2 investigation once the preliminary review concludes on June 25. Such a review could extend for months and may result in regulatory demands for asset divestitures to alleviate competition concerns.
Focus on Market Power and Portfolio Effects
EU antitrust authorities are reportedly concerned about Mars’ increased market share and the strength of its combined brand portfolio in several European countries. The merged company would include globally recognized brands such as M&Ms, Snickers, Pringles, and Pop-Tarts—raising the potential for portfolio effects, where the combination of strong brands across categories could reinforce market dominance.
However, proving portfolio effects under EU competition law is legally complex, and finding effective remedies for such concerns can be equally challenging. Regulators would need to demonstrate that the deal materially harms competition beyond traditional market share concerns.
One of the Largest Deals in the Sector
Announced in August 2024, this transaction ranks among the largest in global food and beverage M&A history, taking place amid broader industry challenges such as high inflation, consumer spending pressure, and a growing shift to private label brands.
