Mars Receives Final Regulatory Approval for Kellanova Acquisition
News Summary
Mars has secured the final regulatory authorization required to close its acquisition of Kellanova, receiving unconditional approval from the European Commission. This completes all 28 global regulatory reviews. Expected to close on December 11, 2025, the deal will combine influential brands from both companies, forming a global snacking powerhouse with anticipated annual revenues of approximately $36 billion. Kellanova shareholders approved the merger on November 1, 2024, with each share of Kellanova common stock to be redeemed for $83.50 in cash. Mars' initial offer of $77 per share was raised multiple times to the final $83.50 after negotiations. The acquisition did not require any divestitures. Kellanova brands such as Pringles, Cheez It, Pop Tarts, international cereals, and RXBAR will join Mars brands including Snickers, M&Ms, Twix, and Kind. The combined entity will operate across 145 markets with over 50,000 employees and 80 manufacturing facilities, maintaining its snacking headquarters in Chicago. Mars has secured a $29 billion bridge loan facility to finance the acquisition.
Background
In 2025, with Donald J. Trump as the incumbent US President following his re-election, his administration's regulatory stance may influence the corporate M&A environment. Kellanova was established in October 2023 following Kellogg's spin-off of its North American cereal business, aiming to become a snacks-focused public company. This restructuring made it a more attractive acquisition target, aligning with broader industry consolidation trends. Mars is a diversified global enterprise with approximately $55 billion in annual revenue and 150,000 employees, spanning pet care, veterinary services, food, and snacking divisions. This acquisition aligns with Mars' strategy to expand its snacking portfolio.
In-Depth AI Insights
What are the broader strategic implications of this unconditional approval for future M&A in the global packaged food sector, particularly under the Trump administration? - The acquisition receiving all 28 regulatory approvals without requiring any divestitures suggests that large-scale industry consolidation may face fewer hurdles in the regulatory environment under a re-elected Trump administration. This relatively permissive stance could encourage other major food companies to pursue similar M&A opportunities, accelerating concentration in the packaged food sector. - While the European Commission's