Kemet has received has received regulatory approval from the European Commission (EC) to acquire 34 percent of NEC Tokin.

KEMET, a manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, announced it plans to buy 34 percent interest in NEC Tokin in a $50 million deal and eventually would acquire 100 percent of the company.

NEC Tokin is based in Japan and makes tantalum capacitors, electro-magnetic and electro-mechanical access devices, and piezoelectric ceramics. The company has production facilities in Japan, China, Vietnam, the Philippines and Thailand, and operates 10 sales offices in the US, Europe, and Asia.

The EC reported that the proposed acquisition would not pose any concerns about limited competition in the marketplace. The commission noted that there are a sufficient number of competitors in the markets affected and Kemet would realize a limited increase in market share.

Additionally, the EC reported there was a limited overlap between the companies’ products.

Under the agreement, Kemet will pay an initial purchase price of $50 million at the closing of transaction for a 34 percent economic interest and a 51 percent voting interest in NT.

Kemet will make a second $50 million payment around August 31, 2014 in exchange for an additional economic interest of 15 percent, resulting in an economic ownership of 49 percent while maintaining 51 percent of the voting common stock. The value of the third and final payment will depend upon the operating results of NT at the time.

Kemet is based in Greenville, S.C.