(BRUSSELS) - The European Commission on Thursday launched a probe into a proposed merger of dairy giants Friesland Foods and Campina, expressing "serious doubts" it would comply with EU competition rules.

"The two companies are in competition ... with the same dairy products (milk, cheese and lactose) and it is possible that uniting their activities could pose supply problems for their rivals," Brussels said in a statement.

The merger is already signed, with Friesland Campina seeking to rival French global leader Danone. The Commission has set a deadline of November 24 for a final decision regarding clearance.

"At a time when food prices are rising, consumers need to be protected against any lessening of competition likely to produce price rises in this sector," said Competition Commissioner Neelie Kroes, adding that the risk in this instance is "real."

Between them, Friesland and Campina boast an annual turnover of 8.3 billion euros (13 billion dollars), employing 22,000 people and sustaining 17,000 suppliers -- also shareholders -- in Belgium, Germany and the Netherlands.

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