The European Union has launched an antitrust survey on the acquisition of Mars by Pringles Kellanova producer, announced on Wednesday, citing concerns about the increase in market prices.In a preliminary evaluation, the European Commission has stated that the agreement from billions of dollars between the two snack snacks based in the United States would increase the bargaining power of Mars against EU retailers.
Announced last August, the agreement of 35.9 billion dollars (about 31 billion euros) had the purpose of bringing to Mars’ ‘Mars’ fold of Mars’ Fold’ Fold, Pringles and Cheez-it.
Why is the EU worried about the acquisition?
The EU stated that alarmed retailers in the block of 27 nations contacted, expressing concerns regarding the bargaining power of Mars in case of agreement. “By acquiring Kellanova, Mars will add several very popular brands of potato and cereal chips to its products already large and strong products,” said the head of the EU competition Teresa Ribera. In addition to Pringles, Kellanova also produces Kellogg cereals.Citing inflation and high food prices across the continent, Ribera underlined the importance of guaranteeing “this acquisition does not further increase the cost of the shopping baskets”.
He added that the in -depth investigation of the EU will evaluate the impact of the agreement on the price of the products sold by both companies.
Mars, who also makes popular snacks including M&M and Snickers, defended the acquisition, saying that “would offer more choice and innovation to consumers”.
“We are disappointed but they remain optimistic that this investigation will be positively resolved,” said the company in a declaration, adding that it was collaborating with the investigations.
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