(BRUSSELS) - The European Commission approved on Wednesday French insurer Groupama's purchase of the insurance business of the biggest Hungarian bank after finding the deal would not stifle competition.

"The commission concluded that the operation would not significantly impede effective competition," the European Union's top antitrust watchdog said in a statement.

OTP agreed in February to sell its insurance business, OTP Garancia, to Groupama for 164 billion forint (647 million euros, 1.03 billion dollars) in order to better focus on its banking activities.

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