The European Commission on Thursday cleared the way for the world’s largest textile machinery company to be created after giving Promatech SpA's takeover of Sulzer Textil the green light following a top-level competition probe.

The Commission was asked to investigate the proposed deal - the financial terms of which have not been revealed - earlier this year by worried competition chiefs in several countries including France, Germany and the UK.

But in a statement on its website, the Commission said its concerns had been addressed by Promatech offering the divestiture of the rapier weaving machines operations in Verona (Italy) and Solothurn (Switzerland).

It added: "A careful analysis indicated that Promatech would have dominated the Western European market for rapier weaving machines with a very high market share. The other competitors in the European Union, Picanol of Belgium and Dornier of Germany, would have very small market shares in comparison.

"To address the Commission's concerns, Promatech offered to divest Sulzer Textil's rapier weaving machine business in Schio and Zuchwil. These commitments completely remove the overlap created by the acquisition and fully remove the Commission's objections to the deal."

Sulzer Textil is a unit of Swiss industrial group Sulzer AG, and Promatech, owned by Italy's Itema Group. The acquisition will see Itema have a presence in more than 90 countries.