Latest news with #DanielGuarnera
Business Times
3 days ago
- Business
- Business Times
Mars US$36 billion Kellanova deal waved ahead by US regulator
[SAN FRANCISCO] Mars' US$36 billion takeover of snack maker Kellanova was given the green light by the US Federal Trade Commission (FTC) on the same day European Union regulators opened up a lengthy probe of the deal. The head of antitrust enforcement at the Washington-based agency said a review of the deal found that it 'does not meet the standard for an anticompetitive merger'. 'Commission staff closely reviewed every aspect of this transaction, including both specific product markets and potential portfolio effects from the acquisition,' Daniel Guarnera said on Wednesday (Jun 25). 'They turned over every stone needed to arrive at a robust assessment of the likely competitive effects of this transaction.' Earlier in the day, the European Union opened an in-depth investigation over concerns that the largest packaged-food deal in almost a decade could thwart competition. In the takeover, Mars, known for its chocolate, will get a number of snack brands, including Pringles chips. The deal will allow Mars to add 'several very popular brands of potato chips and cereals to its already broad and strong product portfolio', the EU's antitrust chief Teresa Ribera said. The probe 'will assess the transaction's impact on the price of these companies' products for consumers'. The companies have now secured regulatory approval in 27 out of 28 jurisdictions with no asset sales or other changes to their business, and expect to close the deal 'towards the end of 2025', Mars chief executive officer Poul Weihrauch said in a statement. Announced last August, the deal will help closely held Mars diversify its chocolate-heavy portfolio away from cocoa, whose prices have risen to historic levels. Kellanova itself has fared better than most of its competitors with a string of strong earnings since it spun off its cereal business as WK Kellogg. In his statement, Guarnera said the companies sell different products in other countries, including breakfast cereal sold by Kellanova in Europe that it does not sell in the US. 'The Trump-Vance FTC takes an America First approach to antitrust enforcement,' Guarnera said. 'Our job is to determine whether there is a violation of American law that we can prove in court. And once we have concluded there is not, our job is to get out of the way.' BLOOMBERG
Int'l Business Times
4 days ago
- Business
- Int'l Business Times
EU Probes Mars Takeover Of Pringles Maker Kellanova
The European Union said Wednesday that it had opened an antitrust investigation into Mars's multibillion-dollar acquisition of the snack food business Kellanova over concerns it would lead to higher prices for consumers. The European Commission said a preliminary assessment indicated the deal would increase the bargaining power of Mars, the maker of M&M's and Snickers, against retailers in the 27-nation bloc. "By acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio," EU competition chief Teresa Ribera said. "As inflation-hit food prices remain high across Europe, it is essential to ensure that this acquisition does not further drive up the cost of shopping baskets," she said. The in-depth investigation will assess the deal's impact on the price of products sold by the two companies, she added. Mars said it was cooperating with the probe and remained confident that the acquisition would "deliver more choice and innovation to consumers". "We are disappointed yet remain optimistic that this investigation will be positively resolved," the company said in a statement. The US Federal Trade Commission meanwhile approved the merger on Wednesday saying it posed no violation of antitrust law in the United States. However, the FTC noted in a statement that "in other countries, Mars and Kellanova offer different products than they do in the United States," arguing that the effects on the market could be different. "Our job is to determine whether there is a violation of American law that we can prove in court. And once we've concluded there is not, our job is to get out of the way," said Daniel Guarnera, director of the FTC's Bureau of Competition. Mars's $35.9 billion (31 billion euro) all-cash purchase of US-based Kellanova -- whose snacks include Pringles and Pop-Tarts -- was announced in August last year. At the time, Mars, which is also headquartered in the United States, said the acquisition would bring two new billion-dollar brands, Pringles and Cheez-It, into its snacks portfolio. The combined grouping aims to meet demand in fast-growing markets including Africa and Latin America, it added. But the EU said several retailers across the bloc had raised concerns about Mars's increased bargaining power, should it be able to add Kellanova's "must-have brands" to its portfolio. "As a result, retailers could be forced to accept higher prices, in order to avoid not being able to offer the products of Mars and Kellanova," the commission said, adding that its decision would be published by October 31.
Reuters
4 days ago
- Business
- Reuters
US FTC says Mars' $36 billion Kellanova deal is not anticompetitive
June 25 (Reuters) - The U.S. Federal Trade Commission said on Wednesday that candy giant Mars' proposed $36 billion takeover of Pringles maker Kellanova (K.N), opens new tab did not meet the standard for an anticompetitive merger and that the regulator was ending its review of the deal. "Our job is to determine whether there is a violation of American law that we can prove in court. And once we've concluded there is not, our job is to get out of the way," Bureau of Competition Director Daniel Guarnera said in an FTC statement announcing the early termination of the investigation.
Yahoo
4 days ago
- Business
- Yahoo
US FTC says Mars' $36 billion Kellanova deal is not anticompetitive
(Reuters) -The U.S. Federal Trade Commission said on Wednesday that candy giant Mars' proposed $36 billion takeover of Pringles maker Kellanova did not meet the standard for an anticompetitive merger and that the regulator was ending its review of the deal. "Our job is to determine whether there is a violation of American law that we can prove in court. And once we've concluded there is not, our job is to get out of the way," Bureau of Competition Director Daniel Guarnera said in an FTC statement announcing the early termination of the investigation.
New York Times
6 days ago
- Business
- New York Times
Ad Giants, Seeking Merger, Agree to F.T.C.'s No-Boycott Deal
The Federal Trade Commission has paved the way for the advertising giants Omnicom Group and Interpublic Group to complete a long-awaited $13.5 billion merger, after the companies agreed that they would not boycott media platforms because of the platforms' political content. The agreement, detailed in a consent decree that the F.T.C. announced on Monday, is an unusual move by one of the nation's principal antitrust regulators. As part of the consent decree, Omnicom and Interpublic cannot band together with other ad companies to direct their clients to participate in such boycotts of social media sites, magazines, TV networks or other publishing platforms. 'Coordination among advertising agencies to suppress advertising spending on publications with disfavored political or ideological viewpoints threatens to distort not only competition between ad agencies, but also public discussion and debate,' Daniel Guarnera, director of the F.T.C.'s Bureau of Competition, said in a statement. The consent decree is part of an effort by the Trump administration to use federal agencies to stanch what it considers corporate America's political bias against conservatives. 'It's a clear effort to deliver on the promise of the Trump-Vance program to use antitrust law to challenge censorship in technical antitrust terms,' said Bill Kovacic, a former F.T.C. commissioner. Want all of The Times? Subscribe.
