The European Commission has approved RenaissanceRe’s acquisition of sole control of the treaty reinsurance business of American International Group.

The parties announced in May that they had entered into a definitive agreement in a deal valued at nearly $3 billion.

In a statement, the commission said: “The commission concluded that the proposed acquisition would raise no competition concerns, given the limited horizontal overlaps and vertical relationships resulting from the proposed transaction. The transaction was examined under the simplified merger review procedure.”

AIG’s treaty reinsurance business includes Validus Reinsurance, a global reinsurance group focused on treaty reinsurance; AlphaCat Managers, an investment adviser for a series of insurance-linked securities funds and vehicles, as well as providing reinsurance among other services; and Talbot Underwriting, a specialty reinsurance and insurance group.

Under the terms of the deal, Bermudian-based RenRe will acquire Validus Re and its consolidated subsidiaries, AlphaCat Managers and its managed funds, and all renewal rights to the Assumed Reinsurance Treaty Unit of Talbot.

AIG has committed to deliver at closing $2.1 billion in unlevered shareholders equity to RenRe with any excess to be retained by AIG.

RenRe will pay approximately $2.985 billion in total consideration, including $2.735 billion of cash and $250 million of RenRe common shares.

The transaction is expected to close in the fourth quarter and is subject to customary closing conditions and regulatory approvals.