Kellanova merger clears major hurdle with FTC approval
- The U.S. Federal Trade Commission approved the proposed merger between Kellanova and Mars Inc. after a year-long investigation.
- Shares of Kellanova increased nearly 1% following the approval news, indicating positive market reaction.
- This marks a key step in the merger process, which now awaits final approval from the European Commission.
In the United States, a significant development occurred when Kellanova's proposed merger with Mars Inc. received approval from the U.S. Federal Trade Commission (FTC). The decision was announced after nearly a year of investigation, determining that the merger would not adversely affect market competition. Following this news, Kellanova's shares experienced an increase of nearly 1% in morning trading on a Thursday. Kellanova, the product of a 2023 division of the Kellogg Co., owns well-known brands such as Pringles, Cheez-its, and Eggo. Meanwhile, Mars Inc., based in McLean, Virginia, is a privately held company that specializes in producing popular sweet snacks like M&M's and Snickers along with other food products. Mars's intention to acquire Kellanova was initially made public last August, with the deal valued at $35.9 billion. The merger is expected to enhance Mars' presence in the snacking market and broaden its global reach since roughly half of Kellanova's net sales originate from outside the U.S. and Canada. Mars President and CEO Poul Weihrauch remarked that the FTC's decision brings them closer to unifying both firms, ultimately promoting innovation and choice for consumers. Currently, the merger still awaits one last regulatory approval from the European Commission, which has yet to be reviewed. Both companies anticipate finalizing the merger toward the end of this year, pending the outcome of the European review process.