U.S. tool maker Stanley Works has won EU regulatory approval for its purchase of U.S. rival Black & Decker.
The investigation by the European Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

In a statement released on Friday, the Commission said: "The Commission's examination of the transaction showed that the parties are active in different product markets. While Stanley makes mostly hand and pneumatic tools, Black & Decker's strength is in electric power tools and the overlaps between the two of them are limited. The market investigation showed that the products offered by the parties do not compete closely with each other and that the combined entity would continue to face several strong competitors with significant market shares."

It continued: "The Commission's investigation also found that the merged entity would not have the ability nor the incentive to close off rival manufacturers from the market through its increased product portfolio, as it will continue to face significant competition and customers retain ample sources of supply."

The companies announced a merger deal in November 2009, saying that the $3.5bn deal was expected to generate $350m in annualised costs savings.

Stanley Works' brands include the Stanley line, Proto and Mac Tools, while Black & Decker brands include DeWalt and Kwikset.