The European Union began an antitrust investment in the acquisition of Mars, the creator of the printals, on Wednesday, citing the concerns of the market price hike.
In an initial evaluation, the European Commission stated that the multicolored deal between two US-based snack manufacturers would incense the bargaining power of Mars against the retail vendors of the European Union.
Announced last August, $ 35.9 billion (Rafli € 31 billion) deal was to bring two new billion brands, pringles and cheese-ile to Mars fold.
Mangal hoped that the acquisition would help you meet demand in rapidly growing markets including Africa and Latin America.
Why is the European Union concerned about the acquisition?
The European Union stated that anxious retailers in the 27-nation blocks signed a deal expressing concerns about the power of the increased bargaining of Mars.
Teresa Ribera, head of the European Union competition, said, “By acquiring Kelanova, Mars will add many vopular brands of potato chips and grains to its already broad and strong product portfolio.” In addition to pringles, Kelanova so produces kelog grains.
Citing inflation and high food prices in the continent, Rebera emphasized the importance of ensuring “This does not increase the cost of the acquisition purchasing baskets further.”
He said that intensive investigation of the European Union would assess the impact of the deal at the cost of products sold by both companies.
Mars, which creates popular snacks, which included M&MS and snickers, defended the acquisition, saying that it would “provide more options and innovation to consumers.”
The company said in a statement, “We are disappointed that it is still optimistic that this investigation wants to resolve positive.”
The decision is expected by 31 October.
Edited by: Scene Sinico
