FTC concludes review of Mars’ acquisition of Kellanova

MCLEAN, Va. - Mars, Incorporated and Kellanova (NYSE:K) announced Thursday that the U.S. Federal Trade Commission has completed its antitrust review of Mars’ pending acquisition of Kellanova without imposing any conditions or remedies.

The transaction has now received 27 of the 28 required regulatory clearances, with only the European Commission review still outstanding, according to a press release statement from both companies.

"This brings us one step closer to uniting two iconic businesses with complementary footprints and portfolios," said Poul Weihrauch, CEO of Mars, Incorporated.

Steve Cahillane, Chairman, President and CEO of Kellanova, described the development as "a significant milestone" toward combining the companies.

Based on the current status of the European Commission’s ongoing antitrust review, the companies expect the transaction to close toward the end of 2025, subject to customary closing conditions.

Mars is a family-owned global company with more than $50 billion in annual sales across pet care, snacking and food products. Its portfolio includes brands such as M&M’s, SNICKERS, and PEDIGREE.

Kellanova, which reported $13 billion in Net Sales for 2023, is known for snack brands including Pringles, Cheez-It, and Pop-Tarts.

The acquisition would create a larger global snacking business combining Mars’ confectionery expertise with Kellanova’s diverse snack portfolio.

In other recent news, Kellanova’s financial performance and strategic developments have captured significant attention. The European Commission has initiated a Phase II investigation into the proposed $36 billion merger between Kellanova and Mars, Incorporated. This development follows concerns about Mars’ market share in certain European Union countries. The merger, which would make Kellanova a wholly owned subsidiary of Mars, is expected to close toward the end of 2025, although the exact timing remains uncertain. Analyst firms such as Citi and DA Davidson have maintained a Neutral rating on Kellanova shares, each setting a price target of $83.50. Citi’s analysts noted that the stock’s future largely hinges on the successful completion of the merger, while DA Davidson highlighted Kellanova’s better-than-expected first-quarter earnings, driven by reduced expenses. Additionally, Kellanova announced a key executive change with John Renwick appointed as the new Chief Financial Officer following Amit Banati’s resignation. These developments are crucial as investors continue to monitor the company’s progress amidst industry challenges and the pending acquisition.

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