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EU Clears Mars’s Takeover of Kellanova, Setting Up Dec. 11 Closing

EU clearance completes the final approval required for Mars to close the Kellanova deal this week.

Overview

  • The European Commission approved the merger without conditions, concluding the deal would not harm competition or give Mars undue leverage over retailers.
  • Mars and Kellanova say all required regulatory permissions are now in hand and they aim to close on December 11 subject to customary closing conditions, after which Kellanova’s NYSE-listed shares will be delisted.
  • The transaction is valued at about $35.9 billion, and Mars projects the combined snacks business will generate roughly $36 billion in annual revenue.
  • Kellanova’s brands including Pringles, Cheez-It, Eggo, Pop-Tarts, Rice Krispies Treats, RXBAR and international Kellogg’s cereals will join Mars Snacking’s lineup such as M&M’s, Snickers, Twix, Skittles, Extra and Kind, broadening Mars beyond confectionery into snacks and breakfast.
  • Following integration, Mars Snacking plans to run about 80 production plants and more than 170 retail sites worldwide, employ over 50,000 people across 145-plus markets, and keep its headquarters in Chicago.