The European Commission has given 'unconditional clearance' to Alcatel-Lucent's recent move to transfer its shareholdings in two space joint venture companies - Alcatel Alenia Space and Telespazio - to Thales.

This final regulatory approval permits the transfer of Alcatel-Lucent's satellite shareholdings, in addition to its railway signaling business and its integration and services activities for mission-critical systems which were already transferred to Thales in January.

Under the terms of the deal 25 million new Thales shares were issued in favour of Alcatel-Lucent, as well as a cash payment of €710m. As a result, Alcatel-Lucent's interest in Thales increased from 9.46 per cent to 20.95 per cent. The French State remains Thales' main shareholder with a 27.29 per cent stake (compared with 31.26 per cent previously).