Brussels  - The European Commission approved Friday a major takeover in Germany's automotive components industry, clearing family- owned Schaeffler Group to take a main stake in stockmarket-listed Continental.

Schaeffler is mainly a maker of ball-bearings, whereas the bigger Continental has a focus on tyres and electronics.

The 10-billion-euro (14-billion-dollar) takeover bid, initially seen as hostile by Continental, has raised questions about whether the smaller company is strong enough to cope at a time when the business may have to retrench because of the recession.

In Brussels, the Commission said after a four-week review that there was no overlap between the two businesses and a merger would not disturb free competition.

It noted that Schaeffler bearings were used in Continental components but said there were enough other major bearings makers on the market. (dpa)