The European Commission has given the go-ahead for Reliance Industries' takeover of German polyester manufacturer Trevira.

In a statement it said: "The commission has decided not to oppose the notified operation and to declare it compatible with the common market and with the EEA(European Economic Area) agreement."

Reliance, India's largest private company, had been waiting for the EC to confirm clearance for the merger deal.

Trevira is a key polyester fibre and yarn producer with an annual capacity of 130,000 tonnes of polyester fibre and yarn spread over four sites in Germany, Denmark and Belgium. 

The acquisition of Trevira, coupled with expansions underway in India, will make Reliance the largest polyester fibre and yarn producer in the world.