(BRUSSELS) - EU regulators approved on Friday Swiss food group Nestle's purchase of the medical nutrition business of pharmaceutical major Novartis on condition some assets competing in the same markets are sold.

The European Commission, the top EU antitrust watchdog, cleared the deal after Nestle agreed to sell businesses in the French and Spanish markets for nutrition products delivered through the intestinal tract.

"The Commission found significant barriers to entry and expansion linked to the importance of established brands and concluded that the proposed transaction as initially notified would be likely to weaken competition," it said.

"To address the Commission's serious doubts and remove the competition concerns, the parties agreed to divest the entire healthcare nutrition business of Novartis in France and the entire healthcare nutrition business of Nestle in Spain," it added.

Nestle announced plans in December to buy Novartis' healthcare nutrition business for 2.5 billion dollars (1.9 billion euros) in a deal that would make the Swiss food giant the second player in the field.

Medical nutrition products, usually in tablet form or with extra protein, are designed for ill patients who are not able to eat normally.

Text and Picture Copyright 2007 AFP. All other Copyright 2007 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.