Brussels unconditionally endorses the American company Mars buying the manufacturer of Kellog’s and Pringles
The European Commission has granted its endorsement this Monday so that the American company Mars, supplier of snack brands as renowned as Snickers, Twix or M&M’sacquire Kellanovathe cereal manufacturer Kellogg’s or the fries Pringles. After carrying out an in-depth investigation of the transaction, the community executive has concluded that this would not raise competition problems in the European Economic Area, for which it has authorized it without conditions, as reported by the institution in a statement.
Brussels opened the investigation last June over fears that the purchase, by adding the Kellanova brands to Mars’ already substantial product portfolio, increase the bargaining power of the latter with retail suppliers, which could be forced to pay higher prices for their products that would then be passed on to final consumers.
Significant market power
Research has confirmed that both Mars and Kellanova already enjoy some power in several markets of products from several Member States and that Mars and the merged entity could link different product categories in negotiations with retailers.
However, the evidence collected did not support the conclusion that the transaction would increase bargaining power of Mars against these, so the Commission has determined that the operation will not generate competition problems.
