The European Union has agreed to let PSA parts affiliate Faurecia take over US exhaust emission control specialist Emcon Technologies.

The EU Commission, the body responsible for enforcing laws in the 27-country bloc, said the French company's acquisition of Emcon would not hurt competition, Reuters reported.

The takeover of Emcon, which had sales of EUR2.4bn in 2008, will be paid by issuing 20.9m new Faurecia shares. The deal is expected to close early this year.

Faurecia said it expected the acquisition to free up around EUR60m a year due to "synergies".

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