This would help form a formidable e-tailer to take on brick-and-mortar stores.
The deal proposes that Takealot's U.S.-based parent, Tiger Global, gives up some shareholding to [DATA NPN:Naspers] after combining operations of the their two respective e-commerce companies.
(READ MORE: Naspers launches sale of Swiss online retailer Ricardo: sources)
Last year, Takealot raised 100 million dollars for expansion in both South Africa - where it estimated online transactions make up only about 1 per cent of the 500 billion rand (42.5 billion dollars) retail market - and elsewhere on the continent.
The Competition Commission asked that no more than 200 employees are laid off as a result of the merger.
In a separate deal, the competition authority blocked Life Healthcare's proposed acquisition of the independent Lowveld Hospital, saying the deal could result in patients paying higher prices.
The body also declined to give [DATA HCI:Hosken Consolidated] the go-ahead to acquire Atterbell Investment, which operates the Gallagher Convention Centre, saying the deal would prevent competition in that industry.
(READ MORE: HCI committed to protecting shareholder interests)
Life's shares were up 0.8 per cent and those of Hosken had lost 0.3 per cent at 1254 GMT.