The European Union's antitrust chief Neelie Kroes said Friday she intends to clear German carrier Deutsche Lufthansa AG's (LHA.XE) takeover of Austrian Airlines AG (AUA.VI), though with conditions attached.

After talks earlier Friday, Lufthansa offered further measures to allay competition concerns, the European Commission said.

"Commissioner Kroes has instructed her services to draft a conditional clearance decision," the commission's statement said.

The draft decision will be considered by E.U. member countries and a final proposal will be presented, for adoption by the commission "as soon as possible," it added.

-By Carolyn Henson, Dow Jones Newswires; +32 2 741 1481; carolyn.henson@dowjones.com