The European Commission (EC) has given the green light to the Thales acquisition of Alcatel’s stakes in Alcatel Alenia Space and Telespazio.

"This merger creates a complex vertical structure in an industry involving highly technical products, but the commission has investigated it thoroughly and is satisfied that the existing strong competition on the markets for telecommunications satellites and subsystems will not be adversely affected,” EC Competition Commissioner Neelie Kroes, said in a statement.

Under the deal, announced in April 2006, Thales will acquire Alcatel’s 67 percent shares in Alcatel Alenia Space and its 33 percent share of Telespazio. Telespazio’s main shareholder is Finmeccanica.