EU antitrust regulators are set to approve French group LVMH's acquisition of U.S. jeweller Tiffany at the end of its preliminary review of the $16 billion deal, people familiar with the matter said.

The EU decision comes amid a legal battle between LVMH and Tiffany, with the latter suing the Louis Vuitton owner in a Delaware court, accusing the European company of deliberately stalling completion of the deal.

LVMH has countersued Tiffany, accusing the company of being mismanaged during the COVID-19 pandemic.

The European Commission is scheduled to decide on the deal by Oct. 26.