BRUSSELS, April 29 (Reuters) – The European Commission mentioned on Friday it had cleared French delivery group CMA CGM’s $2.4 billion takeover of Neptune Orient Lines given that NOL pulls out from a rival delivery alliance.

The announcement confirms a Reuters report on April 21 in regards to the impending approval.

CMA CGM, the world’s third-biggest container delivery firm, is trying to strengthen its place in opposition to larger rivals Maersk Line and Swiss-based Mediterranean Shipping Co (MSC).

The European Commission mentioned in a press release that its approval was conditional on CMA CGM’s dedication to withdraw NOL from the G6 alliance, which competes with its personal Ocean Three alliance.

“Container line shipping plays a central role in global trade, so competition in this sector is essential for businesses and consumers in the EU,” EU Competition Commissioner Margrethe Vestager mentioned.

Shipping alliances, which contain sharing vessels and routes to avoid wasting prices, are seen as essential to serving to the business cope with a extreme market downturn.

The concession is much like that supplied by German container delivery firm Hapag Lloyd HLAG.DE and Chilean peer Compania Sud Americana de Vapores (CSAV) two years in the past in return for the EU approving their tie-up. (Reporting By Philip Blenkinsop; Editing by Alissa de Carbonnel)

(c) Copyright Thomson Reuters 2016.