The European Commission has approved the acquisition of the Dutch company Numico by the French group Danone. Danone is a worldwide company focusing on two core activities: bottled water and fresh dairy products. As Danone and Numico are both major suppliers of baby food and baby milk products, the Commission focused on the competitive effects of the proposed merger in these markets. The Commission concluded that it had serious doubts as to the compatibility of the proposed transaction with the single market. To address the Commission’s concerns, Danone committed to divest Numico's baby milk and drink business in France, Danone's baby meals, milk, snacks and drink activities in Belgium and Danone's baby meal and snacks activities in the Netherlands. In light of these commitments, the Commission found that effective competition would not be impeded in the European Economic Area or any substantial part of it.