Daimler, Rolls-Royce win EU okay for Tognum buy

General view of German diesel engine maker Tognum headquarters of in Friedrichshafen June 26, 2011.

BRUSSELS (Reuters) - Car makers Daimler (DAIGn.DE) and Rolls-Royce (RR.L) secured unconditional European Union approval on Monday to purchase Tognum (TGMG.DE) in a bid valuing the German engine maker at 3.4 billion euros.

The acquisition would reinforce the companies' presence in the higher margin industrial diesel engine market where the global market is estimated to be worth more than 30 billion euros a year.

The European Commission said in a statement that the deal would not hinder rivals, confirming a Reuters report on July 20.

"The Commission found that the increment in market shares resulting from the merger will be moderate and that the combined entity will continue to face several strong, effective competitors, such as Caterpillar (CAT.N), GE (GE.N) and MAN (MANG.DE)," the EU executive said.

Tognum, owned by Daimler until it sold the unit in 2005, makes diesel and gas turbine engines for tanks, armored vehicles, generators, cranes, trains and ships.

(Reporting by Foo Yun Chee)