Kraft's Danone acquisition cleared by the European Commission

NORTHFIELD, Ill. Kraft Foods announced it is cleared to propose an acquisition of a global biscuit business, courtesy of the European Commission’s approval.

The announcement comes after Kraft’s offer to acquire the Groupe Danone in July and the signing of the sale agreement with the company at the end of October.

Based on this clearance made by the European Commission, and additional anticipated clearances, the company remains on track to complete the deal before 2008.

Under the agreement, Kraft must divest brands and facilities in Spain and Hungary. The required divestments, Kraft said, will not negatively affect the performance or potential of the combined business.