(BRUSSELS) - EU antitrust regulators on Thursday launched a probe into Austrian oil and gas group OMV's planned takeover of Hungarian rival MOL on concerns the deal could threaten competition.

The European Commission said it would rule by June 22 on the proposed 14-billion-euro (22-billion-dollar) takeover after an initial review revealed the merged group might be left with a crushing grip of some markets.

"This takeover would affect several strategically important energy markets," EU Competition Commissioner Neelie Kroes said in a statement.

"It is therefore crucial that the commission make sure that effective competition will be preserved for the benefit of both domestic and industrial consumers," she added.

State-controlled OMV launched its bid to acquire privately-held MOL in October with the aim of creating a central European powerhouse, despite fierce opposition by both company management and the Hungarian government.

Budapest argues that the unfriendly takeover raises national security concerns over Hungary's energy supplies.

As a result, the Hungarian parliament passed a law, dubbed "Lex MOL," in October, aimed at protecting energy companies that are deemed to be strategic from takeovers, effectively blocking OMV's bid.

Separately, the European Commission has initiated legal action against Budapest, formally warning Hungarian authorities in November that it considered the law "incompatible" with EU rules allowing unrestricted cross-border investment in Europe.

Hungary's efforts to keep OMV at bay has rekindled the prospect of protectionism between EU members in the key energy sector after a past standoff between the commission and Spain and French moves to keep out Italian energy giant Enel.

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