Brussels, June 23 - The European Commission conditionally approved on Monday plans by an Austrian unit of German retailer REWE to buy local rival ADEG.
Both companies sell food and non-food items.
The Commission, the European Union's top competition regulator, said it had been initially concerned that the strength of the combined firm in certain Austrian regions could lead to higher prices for everyday consumer goods.
"During the Commission's preliminary investigation REWE proposed to divest outlets in the relevant regions. These commitments removed the Commission's concerns and it therefore concluded that the transaction would not significantly impede effective competition," it said in a statement.