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EU clears Nordic shipping JV's buy of Hyundai unit

BRUSSELS, Nov 29 (Reuters) - Scandinavian shipping companies Wallenius Lines AB and Wilhelmsen ASA can buy a car shipping unit from South Korea's Hyundai Merchant Marine , the European Commission said on Friday.

The Commission said it approved the deal once Wallenius and Wilhelmsen offered to withdraw from a shipping conference, ending a threat to competition.

The deal, which a Wilhelmsen executive has said is the largest ever foreign acquisition of a Korean operation, will net Hyundai $1.3 billion in cash, most of which it will use to repay maturing debt.

The two Scandinavian firms will take an 80 percent stake in the car shipping unit, with South Korean car makers Hyundai Motor and Kia Motors holding the rest.