Kellanova shares slip as antitrust rumours circulate

Reports of a “full-scale EU antitrust investigation” into Mars’ $36bn acquisition of Kellanova have cooled excitement for the deal in New York.

NYSE-listed Kellanova’s share price slipped to $78.94 at market close on Wednesday, down 1.5% and at its lowest point since the mega-merger was confirmed in August 2024.

Speculators’ cause for concern came from reports – first in Reuters, and later the Financial Times – that Mars’ bid will be investigated by the European Commission over its potential to dominate the snack market in Europe.

The all-cash offer, expected to close on 30 June, will be the biggest deal in Mars’ history, far bigger still than its $23bn acquisition of Wrigley in 2008.

Sources close to the deal told Reuters that a full-scale investigation would take place, potentially requiring the sweets and snacking giant to divest assets. A preliminary review is set to complete by 25 June, with Mars reportedly offering no concessions to the watchdog.

Under the terms of the deal, Mars has offered $83.50 for shares in Kellanova – a premium that caused shares in the Kellogg’s spinoff to rocket from around $57 per share to just over $80, a price that held from mid-August 2024 to early June this year.

The Grocer has contacted Mars, Kellanova and the European Commission for comment.