Centrica, the UK’s biggest utility, on Friday came one step closer to acquiring Venture Production, the UK-listed oil and gas exploration company, after the European Union gave the deal regulatory approval.

The European Commission said the combining of the two companies would not distort competition.

Venture’s management and some key investors are still trying to fight off Centrica, which last month offered 845p per share, valuing Venture at £1.3bn ($2.1bn).

Acquiring Venture’s gas fields would allow the utility to reduce the risk it faces from fluctuating wholesale gas prices. But Mike Wagstaff, Venture’s chief executive, has rejected the offer, arguing investors should take nothing less than 900p.

Some analysts, however, say investors may be more inclined to take Centrica’s offer than to wait for Venture to deliver on its growth promises. Investors have until August 28 to decide.