The European Commission has cleared contract logistics firm Ceva Group to buy US freight forwarding company EGL Inc for US$2.02 billion.

Ceva Group is controlled by the New York-based private equity firm Apollo Management.

After looking into the acquisition, the commission found that the merger wouldn't hinder competition in Europe as the companies' combined market share in freight forwarding and contract logistics services would be very limited.

EGL, short for Eagle Global Logistics, provides supply chain systems. The company operates in more than 100 countries and is involved in the transport and import and export industries.

Ceva also provides supply chain systems. The company operates in some 30 companies in sectors such as automotive, electronics, publishing and media. Ceva employs around 38,000 people and manages more than seven million sq m of warehouse space.