The global cocaine market breaks its own records

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

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

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

In 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.

March 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 global cocaine market breaks its new press release. “We now plan that the transaction will be finalized towards the end of 2025. global cocaine market breaks its However. it is currently impossible to predict the exact calendar. ” said the group, convinced that the operation “will offer more choice and innovation to consumers”.

In the United States on Wednesday. the Federal Commerce Commission (FTC) gave the green light to the merger. 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,” said Daniel Guarnera, in charge of global cocaine market breaks its new competition within the FTC. The EU competition gendarme has until October 31 to make a decision.

He may authorize. prohibit the global cocaine market breaks its 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.

This article was published automatically. Sources: ATS / AWP / AFP