The European Competition Commission has cleared US cruise operator Carnival's £3.8bn (€6bn) bid for UK rival P&O Princess, a deal it was originally expected to block.

The Commission had at first felt the deal, which would give Carnival a dominant position in the UK and Germany, was uncompetitive. But it decided after "in-depth analysis" that low barriers to entry and possible competition from operators outside these countries outweighed the concerns, according to a statement from the Commission on Wednesday.