SEC approves merger of GameStop and Electronics Boutique

US retailers GameStop and Electronics Boutique have cleared another hurdle in their bid to merge following the approval of the deal by the US Securities and Exchange Commission.

The companies announced that the proposed merger had been "declared effective" yesterday and share prices rose steeply as a result. Since the deal was first announced, both firms have seen their stocks rise in value by over 50 per cent.

Investors will get the chance to vote on the merger at the annual stockholders meetings, scheduled for October 6. The boards of directors for both EB and GameStop have already advised investors to vote in favour of the merger.

If it's approved, the merger will be concluded soon after the meetings. Operating under the name of GameStop, the company will own more than 3200 stores in the US, with about USD 3.8 billion in annual revenue.

It's thought that the new firm will then look at ways of expanding into Europe - Electronics Boutique recently acquired Spanish retailer Jump and is known to have further ambitions to build on its foothold in the region.