Kellanova's Trading Volume Surges 260% to Rank 94th Amid Mars Acquisition Scrutiny

On June 18, 2025, Kellanova's trading volume reached 7.63 billion, marking a significant 260.23% increase from the previous day. This surge placed Kellanova at the 94th position in the day's stock market rankings. Meanwhile, Kellogg Company (K) experienced a 1.65% decline, marking its second consecutive day of losses, with a total decrease of 1.73% over the past two days.

Mars' $36 billion acquisition of Kellanova, the maker of Pringles, is set to undergo a comprehensive EU antitrust investigation. This development comes as regulators scrutinize the potential market dominance of the combined entity, particularly in categories such as confectionery, breakfast cereals, and frozen desserts. The investigation focuses on whether the merger could lead to unfair terms for retailers, including higher prices or restrictive distribution practices.

Legal experts suggest that the minimal overlap in product portfolios between Mars and Kellanova might limit the EU's inclination to proceed with a Phase 2 investigation. Instead, a conditional approval requiring divestitures of certain Kellanova assets appears more likely. The deal includes a "Burdensome Condition" clause, which allows Mars to walk away if the required remedies exceed $750 million in annual revenue, potentially forcing the sale of up to four of Kellanova's top brands. This clause adds a layer of complexity and risk for shareholders.

Kellanova's stock has already experienced volatility, with a nearly 12% dip in April due to regulatory concerns. However, the stock rebounded slightly in May as investors anticipated a mid-June decision. Mars, being a private company, lacks public equity data, but its publicly traded peers like Mondelez International provide some context for market reactions.

The strategic rationale behind Mars' acquisition of Kellanova is compelling. Mars aims to diversify its revenue streams beyond chocolate, which currently accounts for 60% of its sales. Kellanova's brands, such as Pringles and Pop-Tarts, offer entry into high-growth categories like plant-based snacks and convenience foods. The combined entity would control over 20% of the EU's snacking market, positioning it to outpace rivals like Unilever or Ferrero.

Investors should also consider the U.S. Federal Trade Commission's stance, which is less likely to pose a significant challenge due to limited product overlaps. This contrasts with the EU's focus on regional market power, where Mars' dominance in countries like France and Germany could influence the approval process.