Italian defence firm, Finmeccanica has won clearance from the European Commission to purchase Marconi Mobile, the defence communications unit of the British telecoms equipment maker and Italian satellite services company, Telespazio.
Finmeccanica will pay 571m plus 43m in net debt for Marconi Mobile, Europe's second-largest military communications operator and 127m, plus 93m in net debt and 20m of leases for Telespazio.
According to the company, the two acquisitions are aimed at consolidating Finmeccanica's activities in the aerospace and defence sector, strengthening its competitive position as Italy's largest operator and a top player in the sector at a European level.
The Marconi Mobile purchase is strategic for Finmeccanica and will enable it to enter the high-growth military communications sector and strengthen its core business, according to the company.
The European Commission said the firms specialised in different products and had not competed together in the past.
"The one-month investigation did not reveal any competition concerns in the Italian market, the only one where the merger will have an impact, given that the companies' activities are largely complementary," the Commission said in a statement.