Taiwan-based Acer, the world's third largest computer supplier, won approval from the European Union (EU) on Wednesday to buy the Dutch-based company Packard Bell.
"The transaction would not significantly impede effective competition" in the EU, the European Commission said in a statement.
Acer is a global supplier of personal computers and related products, including laptop and desktop personal computers, servers and storage, LCD monitors and high definition TVs. Packard Bell isa European supplier of desktops, notebooks and digital entertainment solutions.
The commission said though the proposed merger would entail horizontal overlaps for desktops and laptops, the market would remain competitive with established alternative suppliers such as Hewlett-Packard, Dell, Fujitsu-Siemens, Toshiba, Sony and Lenovo.
Acer spent 710 million U.S. dollars for U.S. competitor Gateway last October in a bid to bolster its position in North America. The deal helped Acer overtake Lenovo to become the world's third largest computer supplier in terms of market share.
With the proposed merger, Acer aimed to defend its share of the European market and prevent Lenovo from buying Packard Bell.