) --


(BLK) - Get Report

is set to become the world's largest asset manager after EU regulators approved its offer to buy

Barclays Global Investors

for $13.5 billion in cash and stock.

The acquisition of the asset management arm of U.K. banking group


(BCS) - Get Report

will increase BlackRock's client funds to $2.8 trillion, tops in the world.

The European Commission said the deal "would not significantly impede" competition in institutional and retail asset management, meaning the

deal announced in June

can proceed.

Barclays said it would take home $6.6 billion in cash under the deal, and get a 19.9% stake in the combined BlackRock, which will be renamed BlackRock Global Investors.

-- Reported by Joseph Woelfel in New York


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