Solvay cleared to acquire Rhodia

BRUSSELS: Belgian chemicals group Solvay won EU approval on Friday to acquire French peer Rhodia SA for 3.4 billion euros ($4.79 billion).

The takeover will boost Solvay's operations in emerging markets, lifting its percentage of sales from this region to 40 percent. Rhodia is particularly strong in China and Brazil.

The European Commission said in a statement that it did not have any competition concerns over the deal.

"The Commission's investigation revealed that the proposed transaction would neither significantly influence the structure of the relevant markets, nor affect the merged entity's incentive or ability to shut out competitors or customers," the EU executive said.

Copyright Reuters, 2011