Canada's competition watchdog has given the all-clear to Postmedia's purchase of 175 Sun Media newspapers for $316 million.

In a decision posted on the Competition Bureau's website Wednesday morning, the regulator says that after a five-month investigation that began when Postmedia announced the deal last October, it has no opposition to the takeover, because "the proposed transaction is unlikely to substantially lessen or prevent competition."

The move was the final hurdle in the takeover becoming official, which means it's now a done deal.

"The bureau also took into consideration the dynamic nature of media markets and the challenges faced by traditional media in adapting to an increasingly digital world," the competition watchdog said.

"However, its review revealed that both readers and advertisers continue to value newspaper content and advertising in spite of the proliferation of digital alternatives."

Postmedia publishes the National Post and city newspapers such as the Vancouver Sun, the Calgary Herald, and the Ottawa Citizen.