The European Commission has announced its approval for Umicore's proposed acquisition of the precious metals division of the US-based OM Group for a fee of €643 million.

In confirming its decision, the Commission suggested that Umicore would be a strong player in the precious metals recycling business, added that 'it will face sufficient competitive pressure from its rivals.'

The Commission's investigation particularly focused on overlapping recycling and recovery of precious metals from autocatalysts and reached the conclusion that 'although the merged entity will become the number one supplier of such services in Europe, it will face sufficient competitive pressure from the other main suppliers located in and outside Europe.'

'The move will improve Umicore's downstream capabilities and access to markets. The acquisition is consistent with Umicore's move away from traditional mining activities,' said an Umicore spokesman.

The deal is yet to be signed, although it is thought to be likely to be completed today, according to the Umicore spokesman.