The European Commission (EC) has unconditionally approved the NKT Cables’ proposed deal to acquire high voltage cable and cable accessories businesses from Swiss automation group ABB.
According to the Commission, the merged entity would continue to face strong competition in the Europeon market.
Upon completion of extensive market investigation, the EC concluded that proposed acquisition will not result in a significant reduction in competition.
The Commission said: "Significantly, the Commission's investigation revealed the recent and successful entry of competitors from Asia, such as LS Cables and Sumitomo. These companies are now helping to drive and ensure competition in the high voltage cable and power cable accessories markets."
ABB's high voltage cable and cable accessories businesses focus on the development, manufacturing, and sales of high voltage and extra high voltage power cable systems as well as power cable accessories designed for use with power cables.
ABB signed a deal in September 2016 to sell its high-voltage cable system business to NKT Cables for $934m as part of its strategic review of its Power Grids division.
Its cable system business has manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden.
NKT Cables president and CEO Michael Hedegaard Lyng earlier said: “ABB’s high-voltage cable business will add considerable strength to our portfolio and bring us a world-class manufacturing operation.”
ABB agreed to sell its high-voltage cable technology and manufacturing as well as service footprint to NKT Cables.