* EU OK conditional on sale of hydroxy monomers business
* BASF- sales were below 100 million eur in that business
* BASF- China regulator also approved Cognis acquisition
* BASF sees deal closing in first half of December
(Adds BASF comment)
BRUSSELS, Nov 30 (Reuters) - German chemical industry leader BASF won conditional European Union regulatory approval on Tuesday for its 3.1 billion euro ($4 billion) purchase of smaller peer Cognis to reinforce its presence in the cosmetic additives market.
The European Commission said the condition of the merger was BASF's divestment of its activities in the hydroxy monomers, a chemical product used in coatings and adhesives.
"The approval is subject to the divestiture of businesses that accounted for sales of significantly less than 100 million euros, which is less than 3 percent of Cognis' total sales," BASF said.
Chinese regulators have also approved the acquisition, BASF said, adding that it expected the transaction to close in the first half of December.
BASF unveiled the deal in June, forecasting a boost in earnings per share from 2012 from the acquisition. The takeover will add products such as additives for cleaning products and chemicals derived from palm, coconut and corn.
"The proposed transaction, as initially notified, would have created a very strong player in a market where concentration is already high," the Commission said in a statement.
"To remedy the Commission's concerns, BASF offered to divest activities in the sector in question."
BASF's core chemicals and plastics business is heavily dependant on industries such as autos and construction, both of which were hit hard by the economic crisis. It expects to close the Cognis deal in November.
(Additional reporting by Jonathan Gould in Frankfurt; Editing by Erica Billingham)