European Commission opens in-depth investigation into Kellanova buyout

The European Commission said it has opened an in-depth investigation to assess the proposed acquisition of Kellanova (K) by Mars. “The Commission has preliminary concerns that the transaction could lead to higher prices for consumers due to Mars’ increased negotiating power towards retailers in the European Economic Area,” the agency said in a statement. It adds, “The Commission’s preliminary investigation indicates that, by enlarging its product portfolio with the addition of Kellanova’s very popular brands, Mars could increase its bargaining power vis-a-vis retailers. As a result, Mars could be in a position to use this increased leverage to, for example, extract higher prices during negotiations, which in turn would lead to higher prices for consumers.”