Suzuki announced Saturday it will sell its 1.5 percent stake in Volkswagen to Porsche next week, finalizing the divorce between the two automakers.
The sale to Porsche Automobil Holding SE — which is Volkswagen AG's largest shareholder — will go through on Wednesday, The Wall Street Journal reports, netting Suzuki ¥36.7 billion ($304 million USD) in special profit.
Suzuki's stake sale also marks the end of a failed partnership between it and VW. Originally made in late 2009, the partnership included cooperation in emerging markets, and co-development of fuel-efficient small vehicles. In exchange, Suzuki took the 1.5 percent stake in VW, while the latter took a 19.9 percent share in the former.
Regarding the 19.9 percent share, Suzuki bought the stake back from VW last week for ¥429 billion ($3.6 billion), following an order by The London Court of International Arbitration for the German automaker to sell said stake. The court also found Suzuki did breach its partnership agreement, and may have to pay damages in turn.
Photo credit: RL GNZLZ/Flickr/CC BY-SA 2.0
The post Suzuki Divorces Volkswagen, Sells Stake To Porsche appeared first on The Truth About Cars.
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