The U.S. Federal Trade Commission announced late Wednesday that after nearly a year of investigation, it determined that a merger between Mars and Kellanova wouldn’t threaten competition in the market.
Kellanova shares were up nearly 1% in morning trading. Mars is privately held.
Last August, Mars announced its intention to buy Kellanova for $35.9 billion. It said the deal would help it broaden its snacking portfolio and expand globally. Around 50% of Kellanova’s net sales come from outside the U.S. and Canada.
Mars President and CEO Poul Weihrauch said that with the FTC’s decision, the proposed merger has now cleared all but one of the 28 regulatory approvals it sought. An antitrust review by the European Commission remains outstanding.
“This brings us one step closer to uniting two iconic businesses with complementary footprints and portfolios, allowing us to deliver more choice and innovation to consumers,” Weihrauch said in a statement.
Mars and Kellanova said they expect the deal to close towards the end of this year, pending the European review.
