US-based Kraft Foods has received EU approval for the E5.3 billion acquisition of Danone's biscuit and cereal snack division, subject to certain conditions.

The European Union regulator said in a statement: "The (European) Commission's decision is conditional upon the divestiture of a range of Spanish biscuit brands, a plant in Spain and a Hungarian chocolate bar brand."

In order to meet the requirements outlined by the EU, Kraft has vowed to offload a range of its Spanish biscuit brands, including Artiach, Chiquilin, Filipinos and Marba Dorada and one of its production plants in Spain. Kraft has also said that it will sell its Hungarian chocolate brand Balaton.

The deal will expand Kraft's presence in Europe and allow Danone to concentrate on its core dairy and drinks business and reduce its debts.
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