The European Commission has approved the acquisition of Spanish food group, Ebro Puleva's dairy business to France's Lactalis.

The EUR630m (US$795m) sale, which includes dairy brands Puleva, Ram and Castillo, was announced in March 2010 and signaled Ebro Puleva's latest move to focus on rice and on a second key business - pasta.

The European Commission's investigation focused on the markets for cow's milk supplies in Spain and also those for long-conservation milk, liquid cream and local drink, ‘horchata.' It concluded that the acquisition and subsequent consolidation would not be a hindrance to fair competition in the sector.

The French dairy giant is already present in Spanish markets, via subsidiary, Lactalis Iberia S.A. and acquiring Ebro Puleva's dairy business propels it to the market leading position in the country, generating an annual turnover of EUR1.2bn.