Kamala Harris promises food merger crackdown
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Vice President Kamala Harris on Friday plans to propose a federal ban on "corporate price-gouging in the food and grocery industries," plus heightened regulatory scrutiny of food producer and grocery mergers.
The big picture: This comes less than 24 hours after Mars, the closely held maker of Snickers and Skittles, agreed to buy salty snack maker Kellanova for a whopping $35.9 billion.
- The deal could become a juicy target for Harris, were she to win in November.
- It's not only in the bullseye of the first new economic policy she's proposed, but also is the largest announced merger of 2024 and the second-largest deal ever in the packaged food space (behind Heinz/Kraft).
- Mars/Kellanova isn't scheduled to close until sometime in the first half of next year, which could give a Harris White House plenty of time to intervene.
Catch up quick: Kellanova was formed last fall via a spinoff from cereal giant Kellogg, and has been trading on the New York Stock Exchange.
- Its brands include Cheez-It, Pringles, Pop-Tarts, Eggo, and Rice Krispies Treats.
Zoom in: The Harris campaign, in a statement previewing her speech, also makes specific mention of the proposed $24.6 billion merger between supermarket giants Albertsons and Kroger, which the FTC already has sued to block.
- It's not yet clear how a President Harris would implement her "price-gouging" ban, but she'd easily be able to instruct DOJ and FTC antitrust officials to increase scrutiny of food sector mergers.
Look ahead: Mars and Kellanova are pot committed, but Harris may have just put a chill on future food sector deals. At least so long as she keeps surging in the polls.
The bottom line: Kellanova's mission to Mars may have a problem.
