BRUSSELS, April 8 (Reuters) - Liberty Media ( LLYVB ),

which owns Formula One, is set to secure unconditional EU

antitrust approval for its 3.5-billion-euro ($3.8 billion)

acquisition of MotoGP owner Dorna Sports, people with direct

knowledge of the matter said.

Liberty Media ( LLYVB ) announced the deal to buy 86% of MotoGP in

April last year, with Dorna management keeping around 14% of its

equity, giving the deal an enterprise value of 4.2 billion euros

for Dorna/MotoGP and an equity value of 3.5 billion euros.

The European Commission, which acts as the competition

watchdog for the 27-country European Union, is set to nod the

deal through without demanding concessions, the people said.

The EU executive, which will decide on the deal by July 1,

declined to comment.

Liberty Media ( LLYVB ) said it was working constructively with the

Commission.

"There is a very large and growing market for audiovisual

entertainment well beyond sports, and the transaction will

enhance MotoGP's ability to compete in this highly competitive

market," a Liberty Media ( LLYVB ) spokesperson said.

The EU antitrust enforcer had previously warned that the

deal could push up prices for the licensing of broadcasting

rights for motorsports events hosted by both companies.

Its investigation also focused on whether Liberty Media's ( LLYVB )

and U.S. cable company Liberty Global's ( LBTYA ) largest

shareholder, John Malone, has decisive influence over both

companies that may prompt Liberty Media ( LLYVB ) to shut out rival

broadcasters in Belgium, Ireland and the Netherlands where

Liberty Global ( LBTYA ) is present.

The Capitol Forum was the first to report about the imminent

unconditional EU clearance.

($1 = 0.9122 euros)