Brussels opened a survey on the redemption of the American Kellanova (Pringles chips) for his compatriot Mars, a chocolate bars specialist on Wednesday, for fear of price increases for consumers in a context of high food inflation.
The operation of 31 billion euros ($ 36 billion) was announced in August. “When buying Kellanova, Mars will add several very popular brands of chips and cereals to a large and solid products portfolio,” said the European competition commissioner Teresa Ribera. She says she wants to “ensure that this acquisition does not lead to a new increase in the cost of the shopping basket.”
“When buying Kellanova, Mars will add several very popular brands of chips and cereals to a large and solid products portfolio,” said the European competition commissioner Teresa Ribera. She says she wants to “ensure that this acquisition does not lead to a new increase in the cost of the shopping basket.”
The commission, a competition police officer in the EU, fears that the group can excessively increase their power against distributors. “This reinforced position could allow March to obtain higher prices during negotiations” that would be transmitted to consumers.
Reinforced position
In addition to its famous chocolate bar, the Agrifood Giant also produces Twix and Snickers, M & Ms or Whiskas and Royal Canin Animals chocolate candies.
Kellanova’s acquisition would allow him to diversify in salty snacks.
March already achieves an annual turnover of more than $ 50 billion (43 billion euros) and employs more than 150,000 people worldwide.
Kellanova sales, which has about 23,000 employees, amount to around $ 13 billion (11.2 billion euros). The group appears in the New York Stock Exchange unlike Mars, which is a family group.
The commission now has until October 31 to make a decision.
The opening of the investigation does not prejudge this decision. It can authorize or prohibit the operation, or even approve it under conditions, demanding, for example, the sale of certain activities.
The two companies have “a solid market position in several products segments in many member states”, partly thanks to “brands considered essential” for consumers, the commission underlines.
Several distributors have expressed their “concern” about this acquisition, he said.
Source: BFM TV
