The EU has approved the £16 billion merger of Hewlett-Packard with Compaq Computer Corporation.
Analysts say the European approval could help Hewlett-Packard win over shareholders who oppose the move.
The proposed merger, which would be the largest ever in the information technology sector, is still under review in the US.
In a statement, the EU says it has carefully analysed the proposed merger and doesn't believe it would lead to higher prices. The EU believes consumers would continue to benefit from sufficient choice and innovation.
The proposed merger of the two US computer rivals forced the EU Commission into its biggest European antitrust decision since it blocked the £32 billion bid by General Electric for Honeywell last year.
The deal has also been cleared by Canadian antitrust authorities without major conditions.
A four-month investigation by the European Commission could have caused problems for Hewlett-Packard, which is trying to rein in rebellious shareholders.
PA