The European Commission has granted clearance under the EU Merger Regulation to the acquisition of the CSM Sugar Confectionary division of Dutch food group CSM by CVC European Equity Partners.

Dutch food group CSM announced in December that it negotiations with CVC Capital Partners were so far advanced that it expected final agreement on the transaction.

The parties have agreed a provisional takeover price of €850m (US$1.1bn), with the actual value of the transaction to be based on the division’s balance sheet on the date of transfer. CSM said the planned sale of the division was a major step in its strategy of concentrating on its business-to-business activities in the bakery supplies

CSM Sugar Confectionery has an annual turnover of €750m and employs approximately 4,300 people. The division is active in Europe and Asia and owns brands including Läkerol, Dietorelle, Malaco, RedBand, Sportlife, Jenkki, and Lutti.