The European Commission has given the go-ahead to the takeover of Vauxhall and Opel brands by France’s PSA Group, maker of Peugeot and Citroen cars.
European Commission said it had “unconditionally approved” Peugeot’s acquisition of General Motors European division.
It said it had concluded that “the transaction would raise no competition concerns in the relevant markets”.
Vauxhall employs 4,500 people in the UK at plants in Ellesmere Port and Luton.
Elsewhere in Europe, Opel employs about 33,500 staff in Germany, Poland, Hungary, Austria, Spain and Italy.
General Motors agreed the sale of its European division, on which it has not made a profit since 1999, to Peugeot in March.
The deal will mean that Peugeot becomes Europe’s second-biggest carmaker, after Volkswagen.
It will enable the firm to boost its presence in the UK and to re-enter the US market, which Citroen left in 1974 and Peugeot exited in 1991.