THE European Commission gave its approval this Monday for the American company Mars, supplier of snack brands as famous as Snickers, Twix or M&M’sacquire Kellanovathe cereal manufacturer Kellogg’s or the fries Pringles. After conducting a thorough investigation into the transaction, the Community Executive concluded that this would not pose competition problems in the European Economic Area, for which it authorized it unconditionally, as reported by the institution in a press release.
Brussels opened the investigation last June, fearing that the purchase, by adding the Kellanova brands to Mars’ already significant product portfolio, increase the negotiating power of the latter with retail suppliers, who could be forced to pay higher prices for their products, which would then be passed on to end 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 combine different product categories when negotiating with retailers.
However, the evidence collected did not support the conclusion that the transaction would increase bargaining power of Mars against them, the Commission therefore determined that the operation would not generate competition problems.
About The Author
