The European Commission Thursday cleared a plan by Deutsche Lufthansa AG (LHA.XE) to buy U.K.'s British Midland Airways, or bmi.

Lufthansa, which already owns a 30% minus one share stake in bmi, will own 80% of bmi after the deal is completed by acquiring 50% plus one share from bmi founder Sir Michael Bishop.

Scandinavian carrier SAS AB (SAS.SK) owns the remaining 20% of bmi.

-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@dowjones.com