Brussels  - The European Union on Friday approved the takeover by US pharmaceuticals giant Merck of US healthcare company Schering-Plough, ruling that it would not harm consumers in Europe.

The European Commission, the EU's executive, had been concerned that the tie-up might give the new company dangerous dominance in the market for treatments for conditions such as asthma.

But an investigation "found that competition concerns could be excluded in these markets, because Merck's and Schering-Plough's products were not close competitors and a sufficient number of credible competitors would remain in the market after the proposed transaction," the commission said in a statement.

The Brussels-based body had also voiced concerns that the merged company could dominate the market for veterinary medicines, but those were resolved when Merck allowed itself to be bought out of a joint venture with French rival Sanofi-Aventis, the statement said.

The commission is responsible with enforcing the EU's strict competition rules. (dpa)