US federal regulators have approved the proposed $22 billion merger of Hewlett-Packard and Compaq.
The Federal Trade Commission (FTC) also said it voted to close its antitrust investigation of the proposed deal.
But the merger still faces a tough shareholder vote, with Hewlett and Packard family interests opposing it.
HP chairwoman and chief executive Ms Carly Fiorina said the FTC decision "validates our conviction from the outset that the merger can only enhance competition throughout our markets". She said: "We are now focused on winning the shareowner vote," she said".
A Compaq spokesman was not available for comment.
HP shareholders are scheduled to vote on March 19th and Compaq shareholders are to vote the next day.
The companies believe merging will improve the economics of their struggling personal computer divisions and generate $2.5 billion in savings. The deal also would make them dominant in several growing technology markets, especially corporate computing and high-tech services.
European and Canadian antitrust officials have already approved the merger.
PA