Bertelsmann's planned acquisition of Zomba, the largest independent record label in the US, has been approved by the European Commission.

The German record label will pay about $3bn (�2bn; 3.1bn euros) for the label which lists Britney Spears, N Xync and Backstreet Boys among its artists.

Zomba will be controlled by Bertelsmann's music subsidiary BMG.

BMG already owns more than 200 record labels, including Ariola Music, Arista Records and RCA.

Limited market share

The deal was approved despite the Commission's recent decision to be tougher on mergers within the music industry.

"The increase in BMG's existing market share is limited," the Commission said.

That, along with Zomba's "relatively small" share of the music recording and publishing industry in Europe, meant that the acquisition did not violate the European Union's anti-trust legislation.

Zomba's main markets, the UK and Germany, are dominated by Vivendi Universal and EMI Group.

Natural relationship

When the deal was initially announced, in June, Bertelsmann said it would "definitely strengthen our music business". "This is a natural culmination of many years of close business ties and a complex series of agreements negotiated 12 years ago," said Zomba chairman and chief executive Clive Calder.

Bertelsmann's music recording arm, BMG, already held a 25% stake in Zomba's music publishing business and owned 20% of its record division.

"Over the years I have admired Zomba's impressive results, which are perhaps the most spectacular in the industry," said Thomas Middelhoff, Bertelsmann chairman and chief executive.

BMG's music catalogue includes superstar singer Whitney Houston and the Dave Matthews Band.

Bertelsmann's other recent purchases include embattled US song-swapping company Napster and US online music firm Myplay.