The European Commission Thursday approved Vattenfall's plan to sell its German lignite mining and power generation businesses to Czech utility EPH and financial company PPF Investments.
It said that the deal would not impact competition in Germany's lignite mining, power generation or supply markets.
This was because specific types of lignite are supplied under long-term contracts to specific power stations, and cannot be easily substituted by other types.
The EC added that lignite would face "increasing competition" from other power generation fuels, such as natural gas, given Germany's continuing policies to cut emissions.
Swedish state-owned Vattenfall agreed the sale for an undisclosed amount in April as part of its efforts to cut its own emissions and focus more on renewable energy.
It expects the sale to cut its CO2 emissions from more than 80 million metric tons per year to less than 25 million mt/year.
The sale includes the Janschwalde, Boxberg and Schwarz Pumpe power plants and Vattenfall's 50% stake in the Lippendorf plant. It also includes the Janschwalde, Nochten, Welzow-Sud, Reichwalde and Cottbus Nord mines.
The Swedish government approved the sale in July.
