China's Ministry of Commerce has approved Nokia's purchase of Alcatel-Lucent, subject to certain conditions.
The two companies signed an agreement in April, under which Nokia will make an offer for all equity securities issued by Alcatel-Lucent through a public exchange offer in France and the U.S.
The commerce ministry conducted an anti-monopoly investigation on the deal earlier, and found that the acquisition could restrict competition in the Chinese market.
Nokia's patent licenses in China's 2G and 3G markets have increased after the acquisition, accounting for around 40 percent of the total.
The ministry says if Nokia raises the licensing fees for its patents, China's wireless communication and mobile terminal device makers may have to exit the market.
So far, the ministry has conducted several rounds of talks with Nokia in order to reduce the deal's potential threat to competition.
