India's Aditya Birla Group gained EU regulatory clearance on Wednesday for its $875 million purchase of U.S.-based Columbian Chemicals that will reinforce its position as the world No. 1 carbon black producer.

The deal is intended to yield about $50 million in synergies for Birla and give it access to markets in North America, Brazil, Germany, Italy and China. [ID:nSGE710010]

Columbian is the world's third-largest manufacturer of carbon black, which is used as a pigment in dyes and paints and for reinforcement in tyres.

The European Commission, the EU antitrust watchdog, said the deal would not hurt competition.

"European customers would still be able to source carbon black from different suppliers across the European Economic Area and beyond," the Commission said in a statement.

"Continued competition would remain from different producers located within the EEA and also from direct imports from Russian and Ukrainian manufacturers," it said.