EU approves United-Continental merger

BRUSSELS -- The European Commission has approved the merger of United Airlines and Continental Airlines, saying it will have only a small effect on the market share of the two carriers on lucrative North Atlantic routes.

The European regulatory body said Tuesday that the combination of the two US-based carriers won't give rise to any specific concerns because their passenger and cargo routes between Europe and North America largely overlap.

The two airlines have been losing significant amounts of money, first from high fuel prices, then from the recession. Chicago-based United is acquiring Continental through a stock swap deal, and the new airline is to be called United.

EU officials say U.S. regulatory approval for the merger is expected in August.