The European Union has approved Hanwha Group's plan to acquire Daewoo Shipbuilding and Marine Engineering to leave only the decision by South Korea's Fair Trade Commission.

According to industry sources on Monday, the European Commission approved the acquisition on March 31, a decision that came earlier than the expected mid-April timeline.

This means seven competitors, including Japan, Vietnam and China have given Hanwha the green light.

Hanwha Group agreed last year to acquire Daewoo Shipbuilding for two trillion won, or around one-point-five billion U.S. dollars, to secure a 49-point-three percent stake in the company after getting approval from local and foreign antitrust agencies.

South Korea's Fair Trade Commission has not given a clear position or timeline for its decision but is reportedly looking into the vertical integration issue of Hanwha's defense division with Daewoo Shipbuilding's naval division and the possible impact on the warship market.