The acquisition will help LVMH, which owns Louis Vuitton, improve margins and better compete with bigger watch and jewellery companies Richemont and Swatch.
The companies announced the deal in March.
The European Commission, the EU’s competition watchdog, said the deal would not have a negative impact on the market.
“The investigation showed that the combined activities of LVMH and Bulgari do not give rise to high market shares under any plausible market definition,” the Commission said in a statement.
LVMH shares rose 1.3 per cent on the news.