Mars' Mega-Merger Faces EU Antitrust Scrutiny

Mars' ambitious $36 billion bid to acquire Pringles maker Kellanova has encountered significant hurdles, as the European Union's antitrust regulators prepare to launch a full-scale investigation into the merger. Sources familiar with the situation suggest that Mars may need to divest certain assets to alleviate competition concerns.

The European Commission, which serves as the 27-member bloc's antitrust authority, fears that Mars' substantial market share in certain regions and strong brand portfolio could impede competition. However, insiders doubt Mars will present remedies during the preliminary review, set to conclude on June 25.

Following the announcement, Kellanova's stock dipped by 1.1%, reaching a 10-month low. This merger, bringing together well-known names such as M&Ms, Snickers, Pringles, and Pop-Tarts, represents one of the largest deals in an industry striving to scale amid consumer spending shifts and inflationary pressures.

(With inputs from agencies.)