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European Union regulators yesterday approved Chinese carmaker Geely to buy Sweden’s iconic Volvo Cars.

The European Commission said it sees no antitrust problems with Zhejiang Geely Holding Co’s US$1.8bil acquisition of Volvo Cars from Ford Motor Co because the takeover won’t give either company the power to damage rivals.

Geely sells hardly any cars in Europe and Volvo only has “very limited” operations as a car parts supplier, it said.

Geely’s acquisition of Volvo from Ford has been heralded as a breakthrough deal for China’s auto industry, giving one of its most ambitious automakers a well-known, prestigious global brand and access to top-tier technology.

The deal could give Geely a critical edge in China, which is the world’s biggest auto market and one in which foreign brands often dominate. It will also gain its first major foothold in Europe.

Geely, meaning “lucky” in Chinese is a privately-run company that has gradually built its business selling cars, motorcycles and scooters with little government support.

It teamed up with the Chinese state-owned investment firm Daqing to buy Volvo. It says it will spend an extra US$900mil to expand production and make Volvo profitable again.

The EU’s executive said its Tues approval would not affect any decision it could make on European state subsidies for Volvo.

The car maker received state guarantees from Sweden last year to help it secure euro 500mil from an EU government-backed bank. The money was earmarked to develop fuel-efficient cars.

Ford has been trying to sell Volvo since late 2008 to focus on its core Ford, Lincoln and Mercury brands.

As Western automakers unload unprofitable assets, they are finding keen buyers in Asia. Ford sold its Jaguar and Land Rover brands to India’s Tata Motors in June 2008 for US$1.7bil, a third of what it paid for them.

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One of China’s biggest banks is on track to become the largest IPO in history.

Agricultural Bank of China, a lender which boasts more customers than the entire U.S. population, has raised $19.2 billion from investors, according to several news reports. Should the company agree to exercise its option to sell more shares, that number is expected to exceed $22 billion.

“It will, barring extenuating circumstances, be the world’s largest IPO,” said Scott Sweet, senior managing partner of the IPO research firm IPO Boutique.

Pricing for the company’s stock, which will list on exchanges in both Hong Kong and Shanghai, is not expected to be officially announced until Tuesday evening at the earliest.

But if the final figures are anywhere close to current market speculation, Agricultural Bank’s offering would barely edge out fellow lender Industrial and Commercial Bank of China, which set the previous worldwide record of $21.9 billion when it went public in 2006.

Visa currently holds the U.S. record after it raised nearly $18 billion in its market debut in 2008. There is some speculation that General Motors could top that once it eventually goes public again.

Despite concerns about brewing real estate troubles in China, expectations have been for Agricultural Bank to make a splash among investors.

Although the bank will not trade on a U.S. exchange, many on Wall Street are keeping a close eye on the IPO to determine whether China’s economy and stock market are showing any signs of cooling off.

With nearly 24,000 branches and a customer base of approximately 320 million, Agricultural Bank is poised to grow as both the Chinese banking system and domestic consumers become more sophisticated.

Investors will have to wait to see how the broader market responds to the offering however as there is typically a lag between the time Chinese companies price their shares and the first day of trading.

Shares of the company are expected to begin trading July 15 in Shanghai. Hong Kong shares are set to follow a day later.

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The US Lower House voted 237-192 Wednesday to pass a sweeping package of reforms to the financial regulatory system, moving the bill a step closer to the finish line.

But the Senate isn’t likely to take up the measure until the week of July 12. And it’s not clear whether Democrats have secured the votes they need.

After more than 18 months of negotiation and debate, the bill aims to strengthen consumer protection, shine a light on complex financial products and establish a new process for shutting down giant financial firms in trouble.

“We will pass the toughest set of Wall Street reforms in generations,” said House Speaker Nancy Pelosi, D-Calif.. “It reflects transparency and accountability…and this legislation makes common sense reforms that ends the error of taxpayer bailouts.”

House Republicans voted overwhelmingly against the bill, saying it would usher in an era of too much government regulation, and stymie job growth and credit availability.

“This is the financial equivalent of Obamacare,” said Rep. Spencer Bachus, R-Ala., referring to the health care reform measure passed earlier this year.

Democrats won’t make their self-imposed deadline of passing the bill by July 4, due to a delay in finding a different way to pay the $19 billion tab for the measure and Senate commemoration of the late Sen. Robert Byrd, D-W. Va.

On Tuesday, Democratic leaders agreed to pay for the bill by hiking the premiums big banks pay for FDIC insurance on commercial deposits and ending the Troubled Asset Relief Program (TARP) – which aided failing banks, insurers and auto firms – a few months early.

That plan replaced what was already in the bill – assessing big banks and hedge funds – because key moderate Senate Republicans, especially Sen. Scott Brown, R-Mass., didn’t like the idea of passing a new “tax.” The assessment had been tacked on in the final hours of a grueling 20-hour negotiating session last week.

Senate Democrats need Brown and a few other moderate Republicans to get the 60 votes needed to end any filibuster against the measure. The death of Sen. Byrd on Monday and opposition by Sen. Russell Feingold, D-Wis., leaves the Democrats with a maximum of 57 votes toward passage.

In a statement Wednesday, Brown suggested he was pleased that the bill no longer taxed banks. But he stopped short of endorsing the bill, adding he’d review it over the recess.

Another moderate Republican, Sen. Susan Collins, R-Maine, said Wednesday the change made her “inclined to support” the bill. Collins was one of four Republicans who voted for the Senate version of the reform bill in May.

The Wall Street reform bill spends money by creating a couple of new federal agencies. Ensuring the bill doesn’t add to the already ballooning federal deficits was integral to winning conservative Democrats in the House.

President Obama on Wednesday criticized Republicans voting against the bill during a town hall meeting on the economy in Racine, Wis., calling them “out of touch with the struggles facing the American people.”

The bill’s passage is a major victory for the White House, although many of the toughest provisions were weakened over the past month.

For example, measures that would prevented large banks that take commercial deposits from owning hedge funds now has a loophole allowing limited risky investments. And auto dealers will not face increased oversight for auto loans they issue.

Still, consumer advocates maintained that the bill was a victory for Main Street and consumers.

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