BRUSSELS, Sept 16, 2008 (AFP) - The EU's top competition regulator on Tuesday approved the proposed buyout of German electronic component maker Epcos by Japan's TDK Corp.

After examination of the acquisition, the regulator, the European Commission, 'concluded that the transaction would not significantly impede effective competition in the (EU) or any substantial part of it.'

TDK Corporation said at the end of last month it aimed to buy Epcos in a friendly takeover worth 1.2 billion euros (1.7 billion dollars) to boost its flagging earnings.

TDK said it had signed an agreement with Epcos to launch a tender offer for the firm, whose management is supporting the proposed takeover.