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European competition regulators on Wednesday gave clearance for Kraft Foods' hostile and struggling bid to take over British confectioners Cadbury.
The approval, hours after news that only 1.5 percent of Cadbury shareholders had accepted the US group's approach, is conditional on Kraft disposing of Cadbury's Polish and Romanian chocolate confectionery businesses.
"In view of the remedies offered (by Kraft), I am satisfied that the proposed takeover would not adversely affect competition anywhere in Europe and that consumers would not be worse off," Competition Commissioner Neelie Kroes said in a statement.
The Cadbury board has repeatedly rejected Kraft's cash and shares offer worth about 10.5 billion pounds (11.7 billion euros, 16.8 billion dollars).
Kraft Foods said in a statement on Wednesday that it had received valid acceptances "representing approximately 1.52 percent of the existing issued share capital of Cadbury."
Late last year, Kraft offered to buy Cadbury shares for 300 pence in cash and 0.2589 new Kraft Foods shares -- an offer that was deemed "derisory" by the British company's board.
In a bid to win over Cadbury, Kraft sweetened its hostile offer on Tuesday by proposing a bigger cash component -- but faced a fresh rejection from the British firm and objections from Kraft's largest shareholder.
Kraft made its latest move after the sale of its North American pizza division to Swiss rival Nestle for 3.7 billion dollars, enabling the US firm to put more cash behind its bid for Cadbury.
In a twist to events, billionaire investor Warren Buffett's holding company Berkshire Hathaway, which has a 9.4 percent stake in Kraft, said that it opposed a plan by Kraft to raise cash to buy Cadbury via a new share issue.
Kraft is the world's second-biggest snacks group after Nestle, which has said it is not in the running to buy Cadbury, the world's second largest confectionery company behind Mars.
A tie-up between Kraft and Cadbury would merge leading Kraft brands Oreo biscuits and Maxwell House coffee with Cadbury's Dairy Milk chocolate and Trident chewing gum.
Kraft has said the deadline for Cadbury shareholders to accept its offer is February 2.
