BRUSSELS, April 7 (Reuters) - EU antitrust regulators are set to approve with conditions Lidl-owner Schwarz's proposed acquisition of French waste and water management company Suez's recycling business in four EU countries, two people familiar with the matter said on Wednesday.

Schwarz, whose PreZero environmental division is making the acquisition, last month offered to sell assets to address the European Commission's competition concerns. (Reporting by Foo Yun Chee)