Prices under pressure: Mars' takeover of Kellanova provides alarm!

Prices under pressure: Mars' takeover of Kellanova provides alarm!

Erlangen, Deutschland - The takeover of the food manufacturer Kellanova by the US group Mars is currently causing a lot of conversation. Current information shows that the EU Commission has registered concerns about this merger. These concerns could not only significantly influence the food market, but also the wallet of consumers. According to Merkur fears the assumption that Mars could lead to increasing prices Negotiating position towards retailers in the EU.

The competition commissioner Teresa Ribera has made it clear how important it is to avoid price increases. If Mars and Kellanova, which are already well positioned in numerous product areas, are together, this could mean pressure for retailers to accept higher prices in order to be able to offer the products of both companies. So the market situation for consumers could worsen seriously.

market position of Mars and Kellanova

The two companies bring enormous sales to the table. Kellanova, previously known as Kellog Company, achieved net sales of almost 11.8 billion euros in 2023 and has around 23,000 employees worldwide. Mars, on the other hand, has a considerable turnover of over 45 billion euros and employs more than 150,000 people. If the merger occurs, a new food giant would form, which could generate sales of $ 63 billion together.

But the EU Commission has opened a main proceedings to examine the takeover more precisely. The deadline for clarifying the concerns runs until October 31, and until then it will be shown whether the Commission will have further measures. Mars was disappointed with this step, but believes that the deal can be completed by the end of 2025.

Influence on consumers and retailers

Furthermore, preliminary investigations show that Mars could significantly increase its negotiation strength to retailers by integrating the Kellanova brands. According to RP Online could also be affected, since Mars could probably enforce higher prices. The best -known products from Mars in Germany include popular chocolate bars such as Mars, Snickers and Bounty as well as various chewing gum and pet food.

The EU has the task of controlling competitive practices and takeovers in order to protect consumers' interests, such as "https://competition-policy.europa.eu/about/what- Competition-policy Class = "Source_3"> Competition-policy.ec.europa.eu reported. This control aims to ensure that no dominant positions arise and that the competition is still fair.

The coming months therefore promise tension in the food industry, while the European Commission will keep an eye on the effects of this takeover. How the whole thing will develop remains to be seen. It is certain that both consumers and retailers look forward to the decisions of the Commission.