Shares of Kellanova, a major snack manufacturer, saw an increase on Thursday following the announcement that their proposed merger with Mars Inc. has received approval from U.S. regulators. The U.S. Federal Trade Commission (FTC) concluded on Wednesday that the merger between Mars and Kellanova does not pose a threat to market competition, concluding an investigation that lasted nearly a year.
As a result, Kellanova’s stock climbed by almost 1% during morning trading, while Mars, a privately owned company, remains unaffected by the public trading market’s fluctuations. Mars, based in McLean, Virginia, is known for producing a range of sweet snacks such as M&M’s, Snickers, and Skittles. Additionally, Mars manufactures Ben’s Original rice and a variety of pet food. On the other hand, Kellanova, headquartered in Chicago, emerged in 2023 when the Kellogg Company was divided into two separate entities. Kellanova boasts a lineup of brands that include Cheez-its, Pringles, Eggo, Town House, MorningStar Farms, and Rice Krispies Treats.
The merger plan was originally unveiled in August of the previous year, with Mars announcing its intention to acquire Kellanova for a staggering $35.9 billion. The deal aims to expand Mars’ snack offerings and enhance its global reach, benefiting from Kellanova’s strong international sales, which account for half of its total net sales that originate outside the U.S. and Canada.
Poul Weihrauch, the President and CEO of Mars, revealed that following the FTC’s decision, the merger has now secured all but one of the 28 regulatory approvals it required. The final pending review is an antitrust examination by the European Commission.
“This marks a significant step forward in combining two legendary businesses with complementary markets and product lines, enhancing options and fostering innovation for consumers,” Weihrauch stated.
Both Mars and Kellanova express confidence that the merger will conclude by the end of this year, contingent on the completion of the European review process.