EU clears Siemens' Rolls-Royce deal

(BRUSSELS) - The European Commission on Monday cleared German engineering giant Siemens' 950 million-euro ($1.27 billion) acquisition of some of Rolls-Royce's specialist gas turbine operations.

Siemens announced it May it would buy the "aero-derivative gas turbine and compressor business" of the British company, which would strengthen its position in the oil and gas industry.

Rolls-Royce is renowned for its aircraft engines but has also developed them for use across various industries.

The European Union's executive arm said the deal would not raise anti-trust concerns because the two firms were "not close competitors and a number of competitors will remain in the market".

The acquired business has around 2,400 employees and generated 1.1 billion euros of sales in 2013.