The European Commission Wednesday cleared Japanese electronics company Hitachi Ltd. (6501.TO) to buy a majority stake in its tool-making affiliate Hitachi Koki Co. Ltd. (6581.TO).

Hitachi is spending Y16.2 billion to raise its stake in the company to 51% from 32.1%.

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