BRUSSELS, Feb 12 (Reuters) - European companies looking to build scale through acquisitions to better compete with non-EU rivals could increase their chances ​of winning regulatory approval if deals ‌are on a pan-European level, people with direct knowledge of the matter ⁠said.

The European Commission is aiming to set down conditions ⁠for deal approvals in its overhaul ‌of merger rules ‌dating from 2004, the people said. A draft will be published ​in the spring for feedback ‌before regulators implement any changes.

The EU proposal to encourage more pan-European mergers comes amid calls ​from businesses, especially telecoms ​operators, for ‌looser EU merger rules to allow them to scale up and as Europe looks to reduce its ⁠economic dependence on the U.S. and China. 

Regulators want ⁠to encourage pan-European deals rather than national deals which boost the market power of a few players.

The Commission, which acts as the EU competition enforcer, declined ⁠to ‌comment on Thursday.

Discussions on the benefits of a ‌merger which regulators will take into account when ⁠assessing deals are now focused on innovation, sustainability, resilience, investment and employment, the sources said.

Companies stand a better chance with innovation arguments, they said, as the others are more difficult to quantify.

EU merger rules traditionally seek to ensure that deals ​do not result in price hikes and fewer products, which critics say should be broadened to take into ​account innovation and investment ‌and other factors.