The U.S. Federal Communications Commission said late on Tuesday it had approved European telecoms group Altice's acquisition of U.S. cable company Cablevision Systems in a $17.7 billion deal that includes assumption of debt. The Dutch firm still needs approval from the state of New York and New York City. If the deal is approved, Altice would become the fourth largest U.S. cable provider. Cablevision has 3.1 million subscribers, mostly in New York, New Jersey and Connecticut. The FCC said it found the transaction was in the "public interest" and noted Altice had vowed to invest to upgrade Cablevision broadband.

Cablevision Systems president and CEO Jim Dolan speaks at The Internet and Television Expo in Chicago, May 6, 2015. Daniel Acker | Bloomberg | Getty Images

Altice said in a statement it was pleased with FCC approval, "which recognizes the benefits that the proposed merger will bring to consumers in the U.S. We continue to make good progress towards a transaction closing in the second quarter of this year." The approval order noted that a U.S. government review panel including the Justice Department, Department of Homeland Security and Defense Department, told the FCC on April 20 that they "have no objection to grant of the applications" based on the commitments made. In December, the FCC approved the $9.1 billion sale of U.S. regional cable company Suddenlink Communications to Altice. Altice announced in May 2015 its acquisition of a majority stake in Missouri-based Suddenlink, the seventh largest U.S. cable company, with about 1.5 million customers, in its first U.S. acquisition. Altice has acquired or taken control of broadband companies in France, Belgium, Luxembourg, Israel and Portugal, the FCC said, adding it had a track record of improving services after acquiring firms.