Brussels - The European Union's executive on Tuesday approved a joint venture between British aircraft engine maker Rolls Royce and Abu Dhabi investment fund Mubadala aimed at offering aircraft maintenance services in North Africa and the Middle East.

The formation of a joint venture specializing in aircraft engine maintenance "would not significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it," the European Commission said in a statement.

While Rolls Royce and some of Mubadala's subsidiaries are present in the engine-maintenance market, they only compete in limited areas because they specialize in different engine types, the commission ruled.

The commission is tasked with overseeing the EU's strict rules on fair competition, including in questions of mergers and takeovers. (dpa)