(BRUSSELS) - EU competition regulators approved on Wednesday the US technology giant IBM's takeover of Swedish software firm Telelogic after finding that the deal would not stifle competition.

After an in-depth antitrust probe, the European Commission concluded that "the transaction would not significantly impede effective competition," it said in a statement.

Europe's top antitrust watchdog had opened the investigation in October over "serious doubts" that the merged company would have a crushing grip on some software markets, threatening innovation and the development of rival products.

However, after looking more closely at the deal, regulators concluded that the two companies' products did not overlap as much as it first feared.

IBM said in June that it was making a 745 million dollar (491 million euros) bid for Telelogic.

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