The European Commission has cleared the way for French luxury group LVMH to buy its Italian rival Bulgari after deciding the deal would not have a negative impact on the market.

“Bulgari holds small market shares only and LVMH will continue to face effective competition from several other manufacturers of luxury goods,” it said in a statement.

Bulgari and LVMH both produce and sell high-end watches, jewellery, perfumes and cosmetics, as well as fashion and leather goods, including accessories.

LVMH is controlled by Groupe Arnault, which also controls Christian Dior Couture. Its brands include Louis Vuitton, Donna Karan, Fendi, Céline, Marc Jacobs, and Givenchy.

LVMH announced in March that it was acquiring Bulgari for EUR4.3bn ($6.2bn).