I have tried your code and it works just fine.
The file is being created without any problem, this is the code I used (it’s your code, I just changed the datasource for testing):
public ActionResult ExportToExcel()
{
var products = new System.Data.DataTable("teste");
products.Columns.Add("col1", typeof(int));
products.Columns.Add("col2", typeof(string));
products.Rows.Add(1, "product 1");
products.Rows.Add(2, "product 2");
products.Rows.Add(3, "product 3");
products.Rows.Add(4, "product 4");
products.Rows.Add(5, "product 5");
products.Rows.Add(6, "product 6");
products.Rows.Add(7, "product 7");
var grid = new GridView();
grid.DataSource = products;
grid.DataBind();
Response.ClearContent();
Response.Buffer = true;
Response.AddHeader("content-disposition", "attachment; filename=MyExcelFile.xls");
Response.ContentType = "application/ms-excel";
Response.Charset = "";
StringWriter sw = new StringWriter();
HtmlTextWriter htw = new HtmlTextWriter(sw);
grid.RenderControl(htw);
Response.Output.Write(sw.ToString());
Response.Flush();
Response.End();
return View("MyView");
}