BRUSSELS -(Dow Jones)- The European Commission Friday cleared German real estate financier Hypo Real Estate AG (HRX.XE) to buy Dublin-based public financing bank Depfa Bank PLC (XETRA:DEP) (DEP.XE), in a deal valued at EUR5.7 billion, or EUR16.14 per share.

Depfa's business comprises budget financing, public infrastructure projects, advice on privatization of public services and debt restructuring to governments across the world.

Hypo, which focuses on commercial real estate, seeks to broaden its public finance business, long dominated by only a small number of players such as Depfa and Dexia SA (Euronext:DEXB) (DEXB.BT).

Given their limited combined market shares in the banking sector and the lack of any other competition concerns, the commission concluded that the deal would not lead to adverse competitive effects.

The new group will have total assets of around EUR385 billion and a market capitalization of more than EUR10 billion, Hypo said.

-By Peppi Kiviniemi, Dow Jones Newswires; +3227411483; peppi.kiviniemi@ dowjones.com

    (END) Dow Jones Newswires   09-28-07 1005   Copyright (c) 2007 Dow Jones & Company, Inc.