The £12.5 billion deal sees EE's mobile, fixed line and broadband service becoming part of BT.
In a statement welcoming the decision, BT's Chief Executive Gavin Patterson said:
“It is great news that the CMA has approved our acquisition of EE. We are pleased they have found there to be no significant lessening of competition following an in-depth investigation lasting more than ten months.
There will be a distinct EE line of business following completion of the acquisition. This will be led by Marc Allera who will become EE CEO following completion of the deal, but how EE may change over time from a customer's perspective remain to be announced, including what will happen to the relatively recently introduced EE TV service, given BT's strong involvement with the YouView TV platform. BT's other offshoot, Plusnet, last year also launched a YouView-based TV service.
Following today’s approval BT will commence the formal process of completing the deal, which will see EE's shareholders Deutsche Telekom and Orange receive shares in BT.