(Yicai Global) July 13 -- Tencent Holdings’ shares rose after Chinese regulators gave the nod for the internet giant to take private Sogou, China’s second-largest search engine operator. The approval comes days after watchdogs nixed its plan to merge Huya and Douyu, two live-streaming platforms under Tencent.

Shenzhen-based Tencent [HKG: 0700] jumped 3.9 percent to close at HKD555.50 (USD71.54) in Hong Kong today, after earlier gaining as much as 5.2 percent. The benchmark Hang Seng Index added 1.6 percent.

Tencent, Sogou’s largest shareholder, made a buyout bid for the US-listed firm a year ago, hoping to acquire all remaining shares for USD9 each. Tencent owned about 45 percent of Beijing-based Sogou, whose shares [NYSE: SOGO] edged up to USD8.70 yesterday.

The Tencent-Sogou deal was among 20 given “unconditional approval,” according to a document added to the State Administration for Market Regulation’s website today. It did not disclose specific information about the mergers and acquisitions.

The SAMR previously penalized Tencent for buying 36.5 percent of Sogou in 2013. The regulator fined it CNY500,000 (USD77,300) because the merger was not reported to the relevant State Council department as required and violated the anti-trust law, according to a statement released by the SAMR on July 6.

The document also noted that the SAMR had evaluated the impact of the acquisition and concluded that it would not exclude or restrict competition.

Sogou, a subsidiary of portal Sohu founded in 2004, is China’s largest search engine and Chinese input method service provider after Baidu, according to public information.

The proposed combination of Huya and Douyu would further strengthen Tencent’s dominant position in the live-streaming gaming market and would not be conducive to fair market competition, the SAMR said on July 10 in rejecting the merger.

Editor: Peter Thomas