BRUSSELS, Sept. 23 (Xinhua) -- The European Commission on Wednesday approved BlackRock's bid for British bank Barclays' asset management arm, a deal worth 13.5 billion U.S. dollars and set to elevate BlackRock to the world's largest asset manager.

    The commission, the EU's competition guardian, said in a statement that the transaction would not significantly impede effective competition in Europe.

    Barclays Global Investors, Barclay's asset management arm, is active in structured investment strategies such as indexing, global allocation and risk-controlled active products as well as related investment services such as securities lending, cash management and transition management services, primarily to institutional clients.

    The U.S.-based BlackRock is also an asset management company, managing assets on behalf of institutional and individual investors worldwide through a variety of fixed income, cash management, equity and investment accounts and funds. It also offers risk management and advisory services.

    The proposed merger would bring together two leading global asset managers with differentiated asset management products and strategies. With 2.8 trillion U.S. dollars of client funds in total, the new combined company, renamed BlackRock Global Investors, will rank No. 1 in the world.

    Barclays said it would be rewarded with 6.6 billion U.S. dollars in cash under the deal and get a 19.9-percent stake in the new company.

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