Danone''s board has approved the 5.3 billion euro ($7.63 billion) deal after the recent conclusion of consultations with its works council, the French company said.

Kraft said it has definitive documents regarding its planned multi-billion dollar purchase of the cookie and cereal business of French food company Groupe Danone SA.

Under the agreement, Kraft will acquire Danone''s Lu, Prince and Tuc brands. The deal is expected to close by the end of the year, Kraft said.

The acquisition would give Northfield-based Kraft, the largest North American food company, a stronger foothold in Europe and emerging markets and access to an extra 36 factories worldwide.

Kraft shares were down 33 cents at $32.97 on Monday on the New York Stock Exchange. The stock is down 7.2 percent since the deal was announced in early July, while Danone''s shares are down 2.5 percent.

Kraft first announced a tentative accord to buy the Danone operations for $5.3 billion euro in July. The deal was then valued at $7.2 billion, but the dollar has weakened against the euro since and the purchase price now stands at around $7.65 billion.

Under French law, Danone was obliged to consult with a council that represents the European company''s workers before the deal could be finalised.

Danone''s biscuit and cereal division made two billion euros worth of sales last year. It has 36 plants and 15,000 workers. Danone said that it was selling the slower expanding biscuits arm to its US rival would allow it to focus on its more dynamic drinks and dairy divisions.

The acquisition will give Kraft a much bigger presence in Europe. Both companies expect the deal to close by the end of the year, subject to regulatory approval.