Austria's competition watchdog has cleared Abu Dhabi sovereign wealth fund Ipic's plan to raise its stake in energy group OMV to at least 25 per cent, the agency said on Tuesday.

Ipic had informed the Austrian Competition Authority last month of its plan. Parties potentially affected by the move had until Jan. 2 to comment.

'We did not issue a review application yesterday so it has been cleared,' a spokesman for the agency said.

The approval covers potential cartel concerns. Under Austrian law, Ipic as a non-European investor would still need government approval to increase its OMV stake.

Ipic had already raised its stake in OMV to 24.9 per cent in October, calling the Vienna-based group a 'cornerstone' of its portfolio. Austrian state holding company OeIAG holds a 31.5 stake in OMV and coordinates with Ipic any changes in stakes.

OMV declined comment.

Its shares edged up 0.1 per cent to 24.05 euros by 0930 GMT, while Austria's blue-chip ATX index gained 0.4 per cent. – Reuters