Dutch telco KPN has finally been given regulatory approval to acquire MVNO Youfone.

The telco first announced it had agreed to acquire Youfone in June for around €200 million ($216m.)

KPN is buying MVNO Youfone – Getty Images

However, the Netherlands Authority for Consumers and Markets (ACM) said it would need to investigate the proposed merger.

ACM said in September that a deal could harm competition, and noted that as Youfone doesn't have its own network, it has the freedom to use the networks of either KPN, VodafoneZiggo, or Odido.

“Consumers will continue to have sufficient choice after the takeover," the regulator said. "In addition to Youfone, there are several providers that offer competitively priced mobile phone subscriptions. Moreover, economic research shows that prices for consumers are not expected to change significantly. An economic analysis estimates the price effect of the takeover between -0.4 and 0.7 percent. Therefore, no negative effects are expected from the Youfone takeover."

Youfone has an estimated 540,000 mobile subscribers across the Netherlands, while KPN has around 6.3 million.

The merger is expected to be completed early next month.

KPN added in a statement that Youfone "will continue to operate independently within KPN to ensure that current and future Youfone customers are served in the way they are familiar with.”