* Lufthansa to give up some slots in Brussels
* Slots in Germany, Switzerland available to new entrants
* Lufthansa shares down 2.2 percent
(Adds EU Commission no comment, updates share price)
By Foo Yun Chee
BRUSSELS, June 17 (Reuters) - Lufthansa is expected to win approval from European Union regulators for its plan to buy Brussels Airlines after the German carrier pledged to give up some airport slots, a source familiar with the case said.
"The European Commission is set to approve Lufthansa's takeover of Brussels Airlines," the source told Reuters on Wednesday.
"Lufthansa will be giving up some slots in Brussels and make slots in Germany and Switzerland available to other airlines which want to enter the markets there," the source said on condition of anonymity due to the sensitivity of the case.
A Commission spokesman and Lufthansa declined to comment. The acquisition, worth up to 250 million euros ($347 million), is expected to broaden Lufthansa's network and add premium travellers.
The source said other remedies offered by Lufthansa to address competition concerns included mutual recognition of passenger tickets and opening its frequent-flyer programmes to travellers on airlines that take the slots it surrenders.
Lufthansa shares were 2.2 percent lower at 8.86 euros in afternoon trade, underperforming the German blue-chip index, which was down 1.5 percent.
Airlines around the world are looking to merge or acquire rivals to boost scale and tap into growth regions following falling demand due to the global economic crisis.
The Commission, which regulates competition in the 27-country European Union, had started an investigation in January into Lufthansa's planned takeover. It has set a July 1 deadline for its review.
The Commission is also looking into Lufthansa's proposed buy of indebted, loss-making Austrian Airlines, with the deadline for that review also set for July 1.
For a factbox on Lufthansa's pending M&A deals, click on ($1=.7214 euro) (Additional reporting by Angelika Gruber in Frankfurt; Editing by Dale Hudson and Jon Loades-Carter)