Brussels- The European Union on Friday gave the green light to German car giant Volkswagen to take over Swedish truck maker Scania, saying that the deal would not harm competition in Europe.

"The parties' activities do not overlap as far as their core business is concerned. Volkswagen is mainly a manufacturer of passenger cars and light commercial vehicles and Scania is not active in this market sector," a statement from the EU's executive, the European Commission, said.

And while VW holds a minority stake in Scania's German rival truck-maker MAN, the commission, which oversees EU competition rules, decided that this "would not have adverse effects on competition."

"Volkswagen's own activities in the production of trucks and buses are limited to Central and South America. On the other hand, Scania is a producer of heavy trucks focussed on the (European) markets," the statement said.

Scania specializes in making trucks weighing over 16 tons, which it chiefly sells in Europe. VW, one of the world's biggest auto firms, specializes in cars and light vans, owning the Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini and Bugatti brands. (dpa)