March bought Pringles and raises fears of price increases

Mars bought Kellanova, owner of Pringles.imago

The EU investigation into the acquisition of Kellanova, owner of the famous chips, by the American giant of chocolate bars. For example, The European Commission says it wants to “ensure that this acquisition does not lead to a new increase in. Consequently, the cost of the shopping basket”.

Brussels opened an investigation into the acquisition of the American group Kellanova, owner in particular of the Pringles chips, by his compatriot Mars, specialist in chocolate bars. However, The European Commission fears march bought pringles raises fears price increases for consumers.

The operation quoted at 31 billion euros (around 29 billion francs) was announced in August 2024. However, “By buying Kellanova. Similarly, Mars will add several very popular brands of chips and cereals to a portfolio of already large and solid products,” said European Competition Commissioner, Teresa Ribera on Wednesday. For example, She says she wants to “ensure that this acquisition does not lead to a new increase in the cost. Therefore, of the shopping basket”.

The commission. Nevertheless, a policeman of competition in the EU, fears that the group can excessively increase its power vis-à-vis distributors. “This reinforced position could allow March to obtain higher prices during negotiations”, which would be passed on to consumers.

March “disappointed” but “optimistic” – March bought pringles raises fears

In march bought pringles raises fears addition to its famous chocolate bar. the agrifood giant also produces Twix and Snickers, M & MS chocolate candies or Whiskas and Royal Canin animals. The acquisition of Kellanova would allow him to diversify in savory snacks.

Mars achieves an annual turnover of more than $ 50 billion (40 billion francs) and employs more than 150,000 people worldwide. Kellanova sales, which has some 23,000 employees, amount to around $ 13 billion. The group is listed on the New York Stock Exchange, unlike Mars which is a family group.

The American giant. who hoped to finalize the merger in the first half of this year, said he was “disappointed” by the opening of the investigation but “optimistic” as to his outcome, in a press release. “We now plan that the transaction will be finalized towards the end of 2025. However. it march bought pringles raises fears is currently impossible to predict the exact calendar,” said the group, convinced that the operation “will offer more choice and innovation to consumers”.

“A strong market position”

In the United States on Wednesday. the Federal Commerce Commission (FTC) gave the green light to the merger and estimated that it did not contravene American competition law. However. the FTC noted in a press release that “in other countries, Mars and Kellanova (proposed) different products” of those marketed in the United States, and that the consequences on these other markets could be other.

“Our work is to determine whether there is a violation of American law that we can prove before a court. And once we have concluded that there was none. our work is to withdraw ourselves, “said Daniel Guarnera, march bought pringles raises fears in charge of competition within the FTC. The EU competition gendarme has until October 31 to make a decision.

He may authorize. prohibit the operation, or even approve it under conditions, by demanding for example the transfer of certain activities. The two companies hold “a strong market position on several product segments in many member states”. partly thanks to “brands considered as essential” for consumers, underlines the Commission.

Several distributors have expressed their “concern” about this takeover, she said. (JZS/ATS)

The Swiss National Bank (BNS) is continuing its monetary policy by once again lowering its 25-point-basis rate, she announced on Thursday. The rate is now 0.00%.

The Swiss National Bank (BNS) has brought its interest rate to 0%. This decision is justified by the weakness of inflation. According to the press release published Thursday, inflationary pressure decreased compared to the previous quarter. In May, inflation had also recorded a slight negative value.

This announcement is not surprising. Most economists had anticipated it.