By Edith Hancock

The European Union said it would launch an in-depth investigation into Mars's bid to take over Pringles seller Kellanova, escalating its probe into the nearly $30 billion deal amid concerns it could stifle competition.

The European Commission, the EU's executive arm, said on Wednesday that both companies have strong market positions in multiple sectors and countries, with brands that are considered a "must have" for consumers.

Privately-held Mars agreed to buy Kellanova in an all-cash deal last August as part of a plan to build out its snacks business--which includes M&M's, Twix and Skittles--with Kellanova's portfolio of products such as Pop-Tarts and Cheez-Its.

The deal would catapult Mars into supermarkets' chips and crackers aisles, expanding its consumer reach. However, it comes as consumer-goods groups have been struggling with customers balking at higher prices as a result of inflation.

The commission said retailers are worried the transaction could increase Mars's bargaining power and force them to accept higher prices to avoid not being able to sell both its and Kellanova's products. The commission also said supermarket shoppers could switch to a different retailer if they can't find the products they want in one.

Officials set an Oct. 31 deadline to make a decision on their in-depth probe. Mars and Kellanova didn't immediately respond to requests for comment.

Competition Commissioner Teresa Ribera said the EU executive would look at how the deal might affect product prices in the bloc.

"By acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio," she said. "As inflation-hit food prices remain high across Europe, it is essential to ensure that this acquisition does not further drive up the cost of shopping baskets."

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

June 25, 2025 12:48 ET (16:48 GMT)

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