Exide which presently has a 50 per cent stake in the life insurance company would pick up the remaining holding from ING International and the Indian shareholders.
In an order dated February 19, Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
The regulator observed that "apart from their interest in ING Vysya Life Insurance, Exide and ING International are neither engaged in the life insurance business in India nor have any direct or indirect control over any other enterprise engaged in the life insurance business in India".
"The acquisition of sole control over ING Life by Exide, therefore, is not likely to result in any competition concern in India," it added.
CCI also noted that the market share of ING Life in the life insurance sector in India "is insignificantly small so as to raise any competition concern".
As of now, Netherland-based ING International holds 26 per cent stake in ING Life, while 24 per cent is held by certain Indian shareholders.
Exide has proposed to pay about Rs 550 crore for 50 per cent stake, thereby valuing ING Vysya Life at about Rs 1,100 crore.
The battery maker had approached CCI for approval on January 29, 2013.