The Football Association, Britain's governing body of soccer, has given the thumbs-up to Nike regarding its purchase of U.K.-based sports retailer Umbro.

The American sportswear mogul will purchase Umbro for $583 million (285 million pounds), making the bid worth 195 pence a share and representing a 61% premium to the October 17 closing price. Nike has stated the cash will come from its existing capital.

The acquisition will aid Nike in the growing soccer market, as the former currently supplies the English, Irish, Swedish, and Norwegian soccer teams, amongst others. Nike has guaranteed the Football Association that Umbro will keep its name and U.K. locale, as well as its primary focus on soccer.

Umbro reps should be happy about the pending deal, as the company last month warned of lower-than-expected 2008 profit. In afternoon London trading, Umbro shares heated up with a gain of 15.2%.

After finally breaking out of resistance at the 44 level a year ago, Nike shares have risen more than 40%. The stock has consistently been trading above its 10-day and 20-day moving averages since mid-September. Nike is currently trading at $63.85, up 1.08%.