Fosun International Ltd won regulatory approval from the European Commission on Monday to acquire a German automated and flexible production systems maker, paving the way for the Chinese conglomerate to tap into the intelligent manufacturing sector.

The buyout, proposed by Fosun in June, raised no competition concerns, given that there are no horizontal overlaps or vertical links between the activities of the companies, the commission said in a statement.

The transaction was examined under the simplified merger review procedure, it added. No transaction value was disclosed.

Established in 1974, Germany-based FFT provides flexible automation turnkey solutions and customized engineering design and implementation for premium automobile manufacturers in Germany, the United States, Japan and China.

According to a statement from Fosun in June, FFT generated 850 million euros (995 million U.S. dollars) of revenue last year and had more than 2,600 employees.

Getting the greenlight will allow Fosun to go ahead with its strategy to invest in companies that have strong market presence. The acquisition is expected to empower its subsidiaries including Nanjing Iron and Steel United Co Ltd, Eurocrane, and Zhejiang XCC Group Co and to enhance their capabilities in smart manufacturing.

Fosun's chairman Guo Guangchang said in June that the purchase would form a key part of Fosun's strategy of creating better products and services through intelligent manufacturing and technology.

The acquisition can also help FFT access the vast China market, where abundant application scenarios in automobiles and industries have tremendous growth potential, according to FFT's CEO Manfred Hahl.

Chinese companies made 297 outbound merger and acquisition deals in the first half of 2018, according to data from Morning Whistle, a Shanghai-based consultancy specializing in cross-border M&A.

Despite undergoing tighter investment reviews in the West, the combined value of deals from the 208 Chinese companies that chose to disclose financial details reached 98.2 billion U.S. dollars, up 14.2 percent year-on-year, the consultancy said.

Manufacturing is one of the most-sought-after areas among Chinese enterprises by number of deals, according to He Xiaopeng, research director of Morning Whistle.

"Investment and M&A in nonrestrictive industries, including advanced manufacturing and smart healthcare, are likely to sprint ahead," He said. "They have profound market potential."

Shanghai-based Fosun is a commercial empire engaged in sectors as varied as asset management, insurance, industrial operations, healthcare, fashion and property development. It is an avid overseas buyer in industries that center around health, wealth and happiness.

Email: tanyuhan@nbd.com.cn