The Competition and Markets Authority (CMA) has given the proposed £25 million merger of DFS and Sofology the green light.
Furniture retailer DFS first announced plans to take over rival chain Sofology in August.
DFS exchanged contracts to acquire all the all the outstanding share capital of the specialist sofa retailer for an initial enterprise value of £25 million, on a debt-free cash-free basis.
The CMA subsequently opened an investigation and invited comments on the merger in October.
The CMA, along with the Financial Conduct Authority, has now confirmed that the acquisition can take place.
The acquisition will see DFS take over Sofology’s chain of 37 stores across the UK.
DFS chief executive Ian Filby said: “I’m delighted that we are able to complete this deal, which is a big step for DFS towards achieving one of our strategic growth aims of broadening our product and brand appeal.
“Sofology is a fantastic business that takes great pride in the levels of service and innovation it provides to customers and is a great addition to our family.
“This is an important and historic moment for both businesses, our investment demonstrates the confidence we have in Sofology and the wider group.
“I look forward to working with Jason Tyldesley and his team to continue this success.”