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The European Commission has cleared U.S. chemical company Synthomer to acquire U.K.-based vinyl maker Omnova under certain conditions.

Synthomer has agreed to sell off its vinyl pyridine (VP) latex business before the merger receives final approval.

"Specialty chemicals, including vinyl pyridine latex, are essential inputs in many consumer products, notably in the production of tires for the automotive industry," EU antitrust chief  Margrethe Vestager said in a statement. "Synthomer and Omnova are the only two manufacturers of this type of latex in Europe but we can approve their merger because the companies offered to divest all of Synthomer's VP latex production, thus preserving for customers the competitive situation in the market."

Omnova and Synthomer both make specialty chemicals, including VP latex. This product is primarily used by tire manufacturers.

In its investigation into the planned merger, the Commission had concerns that the transaction would reduce competition in the market for VP latex. It found that the two companies are the only two players with production capacity in the EU and the European Economic Area. The acquisition was likely to lead to higher prices and reduced choice, and would lower the quality of services for customers, the Commission said.

Synthomer plc, which is based in the U.K., develops and manufactures specialty chemicals for use in a variety of applications, such as medical gloves, paper, carpet, bedding, footwear, coatings, adhesives and cement.

Omnova Solutions Inc., based in the U.S., develops and manufactures specialty chemicals and thermoplastic films for a variety of applications, such as coatings, adhesives, films, oil and gas, plastics, rubber, paper, carpet and coated fabrics.