European Union antitrust regulators approved the acquisition of US-based Solectron by Singapore's Flextronics International, saying the $3.6 billion deal did not pose any competition concerns, an Associated Press report said.
The Associated Press report, quoting the EU, said the deal, announced in June, would not significantly impede effective competition in the 27-nation bloc.
It added that its investigation into the takeover found that the combined share of Flextronics and Solectron on the electronics market would be limited.
It added that the new joint firm would continue to face 'many vigorous competitors' worldwide amid fierce competition that is driving down prices, the Associated Press report said.
The EU reviews all mergers and takeovers by companies that do business within the EU to ensure they do not violate national or EU competition rules.
Both companies make a variety of electronic devices for companies looking to cut costs by outsourcing some of their manufacturing duties, the report added.
Their client lists include technology giants Cisco Systems, Hewlett-Packard, Motorola, and IBM.
Some of Flextronics' products include cell phone handsets, switches and routers for directing data over corporate networks, and Microsoft Corp.'s Xbox video game console.
Solectron's product lineup includes consumer set-top boxes and MP3 players, as well as navigation systems for cars and medical instruments.
The report said the combined company will have more than $30 billion in annual sales, which analysts said will help Flextronics close the gap with Taiwan-based Hon Hai Precision Industry, which still holds a commanding lead as the world's largest contract electronics manufacturer.