Italy's anti-trust authority has approved Ludoil's acquisition of Sicilian oil refiner Isab, it said in a statement Monday.
The deal that would put control of one fifth of the country's refining capacity in the hands of one company, Reuters reported.
Isab is majority-owned by G.O.I Energy, a company under the indirect control of the Cypriot Argus New Energy Fund A, the regulator's statement said.
"Given the absence of affected markets, the transaction does not appear likely to significantly impede effective competition or result in the creation or strengthening of a dominant position," the regulator concluded.
Isab has an exclusive long-term deal to sell about 90% of its refined products to commodity trader Trafigura running until 2033, the watchdog said, in exchange for crude oil it will supply to Isab.