BRUSSELS (Thomson Financial) - The European Commission said it has cleared, subject to conditions, the proposed acquisition by the Groupe Danone SA of the Dutch company Royal Numico NV.
The commission said its decision is conditional upon the divestment of Numico's baby milk and baby drink business in France, Danone's baby meals, baby milk, baby snacks, and baby drink activities in Belgium, and Danone's baby meal and baby snacks activities in The Netherlands.
In light of these commitments, the commission said it has concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Competition commissioner Neelie Kroes said in a statement: 'In view of the remedies offered, I am satisfied that competition will remain vigorous after the merger and that parents will continue to benefit from innovation and fair prices to feed their babies and toddlers.'
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