The European Commission Thursday cleared General Motors Corp. (GM) to buy Delphi Corp.'s (DPHIQ) steering business.

The deal, which includes a GM loan, will add $400 million to Delphi's balance sheet, according to court documents.

Delphi, GM's former parts division, increasingly is relying on its former parent company as it struggles through the economic downturn.

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

(David McLaughlin contributed to this article)