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By Bloomberg

Nokia Oyj’s bid for Alcatel-Lucent SA won unconditional approval from European Union merger watchdogs who predicted growing rivalry with Samsung Electronics Co. in evolving markets for mobile-phone technology.

The transaction to create the biggest maker of equipment that underpins mobile-phone networks won’t prevent tough competition in Europe from Ericsson AB and Huawei Technologies Co. across the 28-nation EU, the European Commission said in an e-mailed statement on Friday. Other global competitors such as Samsung and ZTE Corp. are on the rise, the regulator said.

“In particular, Samsung is expected to play a more significant role in the near future in relation to the newest generation mobile telecommunications equipment -- so-called 4G, currently being deployed, and 5G,” the commission said.

Nokia’s biggest acquisition would result in a supplier that surpasses Ericsson and Huawei in wireless-infrastructure revenue. Nokia Chief Executive Officer Rajeev Suri will run the enlarged company, which will bolster its position in China, a market of 1.3 billion mobile subscribers, and take on contracts with the two biggest U.S. carriers -- Verizon Communications Inc. and AT&T Inc.