BRUSSELS (Reuters) - European Union competition regulators will decide by Oct. 16 whether to clear U.S. drugmaker AbbVie's (>> AbbVie Inc) 32 billion pounds (51.99 billion U.S. dollar) bid for Irish peer Shire Plc (>> Shire PLC), the European Commission said on Monday.

The deal will help Chicago-based AbbVie cut both its U.S. tax bill and its dependence on its top-selling arthritis drug Humira which will lose its patent protection in 2016.

The EU antitrust authority can either clear the deal unconditionally or demand concessions if it sees potential competition issues resulting from the takeover.

The deal is the latest consolidation in the pharmaceutical industry. The Commission is now reviewing a bid by U.S. drugmaker Eli Lilly (>> Eli Lilly and Co) for Swiss peer Novartis (>> Novartis AG), and U.S. orthopaedic products maker Zimmer Holdings' (>> Zimmer Holdings, Inc.) offer for Biomet Inc [LVBHAB.UL].

(Reporting by Foo Yun Chee)