BRUSSELS, May 19 (Reuters) - European Union antitrust
regulators will decide by June 25 whether to clear Mars' $36
billion takeover of Pringles maker Kellanova ( K ), according to
a European Commission filing.
Family-owned candy giant Mars announced the deal in August
last year that will bring together brands from M&M's and
Snickers to Pringles and Pop-Tarts under one roof.
The U.S. packaged food sector is experiencing a wave of
consolidation as companies seek scale to weather the impact of
inflation-weary consumers cutting back and shifting their
purchases to private label brands.
The EU antitrust enforcer can clear the deal with or without
remedies during its preliminary review or it can open a
four-month long investigation if it has serious concerns.
The companies are seeking to close the deal by August this
year but could extend the deadline by up to 12 months if they do
not receive the necessary regulatory approvals by then.
The deal should be able to withstand regulatory scrutiny due
to limited overlaps between the companies, legal experts said.
Media reports suggest that some European retailers have raised
concerns with the Commission, which may prompt demands for
concessions but not derail the deal.
(Reporting by Foo Yun Chee; Editing by Emelia Sithole-Matarise)