Mars, the maker of M&Ms and Snickers, has received preliminary "green light" from the EU to acquire Kellanova, the owner of the Pringles brand. The $36 billion deal will bring leading confectionery, snack, and cereal brands under one roof, UNN reports, citing Reuters.
Mars offered $36 billion to acquire Pringles maker Kellanova (KN) and aims to overcome an obstacle by obtaining unconditional approval from the European Union's antitrust authorities.
This massive deal will bring the world-renowned M&Ms, Snickers, and Whiskas together with Pringles, Pop-Tarts, and Kellogg's under one brand roof. US authorities have already approved the merger without any restrictions.
The European Commission, which warned in June that the deal could lead to higher prices and could strengthen Mars' negotiating power with retailers, subsequently found insufficient legal grounds to demand concessions.
The Commission, the EU's competition body, declined to comment, as did Mars and Kellanova. The EU's decision on the deal is expected by December 19.
According to NielsenIQ market share data, Mars and Kellanova combined would account for approximately 12% of the American snack and candy industry.