Snack maker Kellanova's shares rose Thursday on news that its proposed merger with Mars Inc. had cleared U.S. regulators.
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.
McLean, Virginia-based Mars makes sweet snacks like M&M's, Snickers and Skittles as well as Ben's Original rice and pet food. Chicago-based Kellanova, which was created in 2023 when the Kellogg Co. split into two companies, owns brands including Cheez-its, Pringles, Eggo, Town House, MorningStar Farms and Rice Krispies Treats.
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.
