The Competition Commission of India on Tuesday said it has approved the minority stake purchase deal of Toyota Motor Corporation and Suzuki Motor Corporation.

The transaction involves the acquisition of a "minority and insignificant shareholding" of 4.94 per cent by Toyota Motor in Suzuki Motor while Suzuki will hold approximately 0.24 per cent stake in the former, a statement said.

The fair trade regulator also said that the purpose of the proposed transaction is to "establish and promote a long-term partnership" between the two firms for future collaborations in new fields, including the autonomous driving filed.

"Although both the parties are active in the broad automobile sector in India, their overlapping business activities arise only in the relevant markets of compact passenger cars and mid-size passenger cars" the statement added.