BRUSSELS -- Sweden's Volvo, the world's second biggest truck maker, won European Commission approval on Monday for a deal outsourcing axle production to U.S. autoparts maker ArvinMeritor, the EU's executive body said.
Under the deal, first announced in October, two French Volvo plants specialized in axles and axle housings will become joint ventures in which ArvinMeritor will hold majority stakes.
ArvinMeritor will also take over the manufacture of non-driven axles at Volvo's Swedish transmission plant.
"The Commission's investigation has shown that the transaction will have no significant impact on competitive conditions in view of the structure of the axle market in Europe," the European Union executive said in a statement.
Some 940 jobs will transfer to ArvinMeritor, a Michigan-based maker of axles, brakes, and exhaust and suspension systems. Volvo employs about 75,000 people.
Volvo did not give a value for the deal in October, but said it would free resources and bring substantial savings.
In 1998 ArvinMeritor took control of Volvo's driven axles operations in Lindesberg, Sweden.