EU probes Mars takeover of Pringles maker Kellanova

The EU is disquieted that Mars would summation added bargaining powerfulness implicit retailers by adding Kellanova brands similar Pringles, frankincense starring to higher prices for consumers. Photo: JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

The European Union connected Thursday said it had launched an antitrust probe into Mars' multibillion dollar acquisition of snack nutrient business Kellanova implicit concerns it could pb to higher prices for consumers.

The European Commission said a preliminary appraisal indicated that the acquisition could summation the bargaining powerfulness of Mars, the shaper of M&M's and Snickers, towards retailers operating successful the 27-nation bloc.

"By acquiring Kellanova, Mars volition adhd respective precise fashionable brands of murphy chips and cereals to its already wide and beardown merchandise portfolio," EU contention main Teresa Ribera said.

"As inflation-hit nutrient prices stay precocious crossed Europe, it is indispensable to guarantee that this acquisition does not further thrust up the outgo of buying baskets."

The in-depth probe volition measure the transaction's interaction connected the terms of products sold by the 2 companies, she added.

Mars' $35.9 cardinal (31 cardinal euros) all-cash acquisition of US-based Kellanova -- which is down snacks specified arsenic Pringles and Pop-Tarts -- was announced successful August past year.

At the time, Mars, which is besides headquartered successful the United States, said the acquisition for $83.50 per stock would bring 2 caller billion-dollar brands, Pringles and Cheez-It, into its business, which already counts connected 15 specified brands.

The combined portfolio was suited to conscionable request successful fast-growing markets specified arsenic Africa and Latin America, fixed their proviso chains and section operations, it added.

But the EU said respective retailers crossed the national person raised concerns astir Mars' accrued bargaining power, should it beryllium capable to adhd Kellanova's "must-have brands" to its portfolio.

"As a result, retailers could beryllium forced to judge higher prices, successful bid to debar not being capable to connection the products of Mars and Kellanova," the commission, the EU's antitrust regulator said.

The probe volition find whether these concerns are confirmed, it said, adding it had until October 31 to instrumentality a decision.

The opening of a probe does not prejudge its outcome, it added.

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Source: AFP