Following the review, Monitor has given its advice to the NHS Trust Development Authority (NHS TDA).
The health sector regulator looked at the pathology services in the local area and examined whether the proposed partnership might adversely affect patients.
Monitor found that there is unlikely to be a negative impact as a result of a reduction in choice and competition. It also found that the proposed merger is not likely to reduce incentives for the trusts to improve other services for patients.
The 2 trusts will take the final decision whether to go ahead with the merger in conjunction with the NHS TDA.