EU clears MetLife takeover of AIG unit

BRUSSELS: US life insurance giant MetLife won clearance from European Union regulators on Tuesday to acquire a unit of American International Group for 15.5 billion dollars (12.3 billion euros).

The European Commission said MetLife's acquisition of AIG's American Life Insurance Company (ALICO) would not significantly impede competition in the 27-nation bloc.

AIG has said that the deal would help it pay back part of a massive bailout it received from the US government during the global financial crisis.

The European Commission said the combined market shares of MetLife and ALICO in EU states are relatively small and the new firm would "continue to face several strong, effective competitors with significant market shares."

The horizontal overlaps between the two companies are essentially limited to life insurance products in only a few EU states, the commission said.

The regulator also approved MetLife's acquisition of Delaware American Life Insurance Company, which does not provide services in the EU.