Mars' $36 Billion Bid for Pringles Maker Faces EU Scrutiny
Mars' proposed $36 billion acquisition of Pringles maker Kellanova is under the microscope of the EU antitrust watchdog. Concerns over market dominance in Europe could lead to required asset sales. This follows a trend in the U.S. food sector to merge for better competition handling.
Mars' ambitious $36 billion acquisition of Pringles manufacturer Kellanova is facing thorough scrutiny from the European Union's antitrust body. Industry insiders revealed on Wednesday that the move could force the confectionery giant to shed assets to mitigate competition issues.
Sources suggest that Mars will not propose solutions to mitigate these concerns during the EU's preliminary examination of the merger, expected to conclude on June 25. Neither Mars nor Kellanova addressed requests for comment, with the European Commission also keeping silent.
This deal, announced by Mars last August, could combine popular brands including M&M's, Snickers, Pringles, and Pop-Tarts. Amidst rising consolidation in the U.S. packaged food sector, European retailers are worried about potential monopolistic practices, emphasizing the deal's implications for items like breakfast cereals and carbonated drinks.
(With inputs from agencies.)
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