By Alessandro Torello

BRUSSELS--The European Union's antitrust authorities approved Friday the creation of a joint venture between German insurance company Allianz SE (ALV.XE) and the financial arm of car maker Volkswagen AG (VOW.XE).

The European Commission "concluded that the proposed transaction would not raise competition concerns, in particular because a number of strong competitors will remain active on the market," it said in a statement.

The joint venture will develop and sell car-insurance products.

Write to Alessandro Torello at alessandro.torello@dowjones.com

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