EU clears Sun Capital buy of Rexam toiletries unit

Private equity firm Sun Capital Partners won EU regulatory approval on Tuesday to acquire British drinks maker Rexam's cosmetics, toiletries and household care business for $459 million.

Rexam, which makes Red Bull and Pepsico cans as well as packaging for food, healthcare and cosmetic products, is selling the unit, because of rising costs and lower volumes at the underperforming business.

The European Commission, which acts as competition regulator, said the proposed deal would not hurt competition in the 27-member European Union.

"The Commission's investigation confirmed that, beside the merged entity, customers in the cosmetics and perfumery industry will continue to have alternative suppliers for cosmetic packaging," the EU executive said in a statement.