The European Commission has approved the proposed acquisition of Dynamit Nobel Kunststoff (DNK), a German plastic automotive components company, by Plastal, the Swedish automotive component manufacturer.

"The transaction will not significantly impede effective competition in the European Economic Area (EEA) or any significant part of it as other large and capable players will continue to compete in the market," the commission said in a statement.

Plastal and DNK both manufacture thermoplastic components (such as bumpers and interior components) for the automotive industry. DNK also manufactures thermoset components for the automotive, electrical and general industry, and produces intermediary materials such as thermoset compounds.

The commission's investigation indicated that the competitive overlaps between the parties on the markets for thermoplastic automotive components are limited and that a significant number of alternative suppliers - including Peguform Germany, Plastic Omnium and Faurecia - remain in the market. In addition, the car industry has a certain degree of purchasing power. The Commission concluded that the envisaged transaction will not change the outlook for competition and that the market will remain highly competitive.