The clearance is conditional on the termination of Glencore's zinc offtake arrangements in the European Economic Area with zinc major Nyrstar, as well as the divestment of Glencore's 7.8% shareholding in Nyrstar.

The commission was concerned that the merged entity would have the ability and incentive to raise prices for zinc metal.

“The merger will bring together two major global players in key commodities,” EC vice president Joaquin Almunia said.

“The proposed remedy ensures that competition in the European zinc metal market is preserved, so that European customers such as steel galvanisers and car makers can continue to produce valuable consumer goods at low prices and good quality.”

Reuters flagged more onerous conditions earlier in the week, including the sale of assets such as Xstrata's Nordenham zinc plant in Germany or Glencore’s San Juan de Nieva refinery.

Europe’s steel body, Eurofer, said the measures imposed by the EC were not sufficient.

“Post-merger, the parties still will have a share of around 35 per cent of the European market, a level of concentration that is dangerously close to the 40 per cent threshold set by the commission,” Eurofer director general Gordon Moffatt said.

According to data from IntierraRMG, the merger would create the world’s largest zinc producer with 11% share of global production.

In addition, the new entity would hold around 5% of zinc reserves and 8% of refined zinc production.

After receiving shareholder approval for the tie-up on Tuesday, the only approvals left are regulatory nods from South Africa and China.