The European Commission approved on Thursday a proposed acquisition of Delphi Steering Business, a U.S. manufacturer of steering products for motor vehicles, by U.S. car maker General Motors (GM).

"The transaction would not significantly impede effective competition" within the EU, the commission said in a statement.

General Motors manufactures and sells cars and commercial vehicles worldwide, while Delphi Steering Business, belonging to U. S. car components supplier Delphi Corporation, is globally active in the manufacture and sale of steering products and half-shaft components for motor vehicles.

Delphi is a major supplier of GM's vehicle manufacturing activities.

The commission said the merged entity would continue to face several strong, effective competitors with significant market shares, so the proposed transaction does not raise competition concerns.