(BRUSSELS) - The European Union's executive arm on Wednesday said it had approved the takeover of Belgian gas supplier Distrigaz by Italian energy group Eni on grounds that the tie-up would not impair competition.

The European Commission noted that Eni's activities include the marketing and supply of natural gas while Distrigaz is active in the natural gas business, mainly in Belgium and France.

"Following its investigation, the Commission has concluded that the proposed acquisition would be unlikely to cause competition concerns," a statement said.

"In France, the parties would continue to face strong competition from Gaz de France which is still by far the strongest gas supplier. On the other markets where they have overlapping activities, the parties' combined presence will remain limited."

The Commission had demanded that the French energy company Suez sell its stake in Distrigaz as a condition for Suez's merger with GDF -- Gaz de France.

Suez announced on May 29 that it had agreed to sell Eni its 57.25 percent stake in Distrigaz for 2.7 billion euros (3.65 billion dollars).

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