The European Commission announced on Wednesday the unconditional approval of Nokia's acquisition of U.S. optical semiconductors and networking equipment maker Infinera.

The commission stated that the takeover does not raise concerns, as the combined market share of the two companies in optical transport equipment supply would remain moderate and face credible competition.

It was reported by Reuters earlier this month that Nokia was on track to receive unconditional approval for the deal announced in June last year.

Upon completion, the acquisition will position Nokia as the second-largest player in the optical networking market with a 20% share, ranking behind Huawei due to the limited presence of Western companies in China.

This acquisition will enable Nokia to expand its sales of equipment to major tech firms like Amazon, Alphabet, and Microsoft, who are heavily investing in constructing new data centers to support the artificial intelligence boom.