The

Competition Commission of India

(CCI) on Tuesday cleared

Mahindra & Mahindra

's proposed acquisition of a nearly 59 per cent stake in commercial vehicle maker

SML Isuzu

for ₹555 crore.

Mahindra & Mahindra in April announced the acquisition of a 58.96 per cent stake in SML Isuzu for ₹555 crore.

"The proposed combination relates to acquisition of SML Isuzu Ltd (Target) by Mahindra and Mahindra Limited (acquirer)," CCI said in a release.

Mahindra & Mahindra is the flagship company of the Mahindra group. It is engaged in the automotive, farm equipment, agricultural products and services sector, etc.

"CCI approves the proposed combination involving acquisition of SML Isuzu Ltd by Mahindra and Mahindra Ltd," the regulator said in a post on X.

In April, the Mumbai-based automaker Mahindra & Mahindra said it would acquire the entire stake of 43.96 per cent held by Sumitomo Corporation, promoter of SML, and separately acquire a 15 per cent stake held by Isuzu Motors, public shareholder of SML, for an aggregate consideration of ₹555 crore.

Besides, the automaker said that it will make an open offer to acquire a 26 per cent stake in SML Isuzu in accordance with Sebi takeover rules.

This acquisition is aligned with the company's capital allocation strategy for investing in high-potential growth areas which have a strong right to win and have demonstrated operational excellence.

Incorporated in 1983, SML Isuzu has a presence in the trucks and buses segment.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.