Delta Airlines’ proposed purchase of a 49% stake in Virgin Atlantic has been cleared by EU and US regulators.

The move – aimed at giving Virgin a greater foothold in the US and Delta more access to London’s Heathrow airport – will intensify Sir Richard Branson’s rivalry with British Airways (BA).

The deal was announced last December when Singapore Airlines said it planned to sell its shares in Virgin to Delta – subject to competition investigations.

On Thursday the European Commission said the agreement did not pose a threat as the venture would have to compete against strong rivals, notably BA and American Airlines.

The commission added that it cooperated with the US Department of Justice and Department of Transportation in reviewing the proposed deal.

It will result in a £224m investment in Virgin by Delta, the largest carrier in the US.

The pair will continue to operate under their own brands but help each other on routes.

At the time the proposed investment was announced, the airlines spoke of their hopes that it would intensify competition on North America routes and bring down ticket prices.