Canadian car parts manufacturer Magna International has won approval from the European Commission to buy a majority stake in DaimlerChrysler's New Venture Gear drivetrain unit.

According to Reuters, Magna announced the deal in May, when it said it would initially own 80% of the renamed New Process Gear in a joint venture with DaimlerChrysler.

Magna reportedly said it would pay about $US435 million in cash and notes for New Venture Gear, and would take full control by September 2007.

New Venture Gear makes components for car drivelines, the part of a vehicle that connects a car's transmission to its wheels. Magna reportedly said it would operate New Venture Gear's US operations in New York and Michigan through the joint venture but would buy its European plant in Germany directly.

New Venture Gear recorded sales of about $1.5 billion last year, with customers including Porsche and the Big Three, Reuters added.