Home Business Suzuki Buys Back Nearly 20% Stake Held by Volkswagen for $3.8 Billion

Suzuki Buys Back Nearly 20% Stake Held by Volkswagen for $3.8 Billion

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Suzuki has bought back a nearly 20% stake held by Volkswagen for 460 billion yen ($3.8 billion).

The Japanese carmaker bought almost 120 million shares at 3,842.50 yen each in after-hours trading on September 17, ending a partnership between the carmakers.

The deal between Suzuki and Volkswagen soured soon after it was formed in 2009.

Last month, an international arbitration court ordered the German carmaker to sell its holding.Suzuki buys back stake held by Volkswagen

The tie up, which resulted in Volkswagen becoming Suzuki’s biggest shareholder, included co-operation on technology and expansion in emerging markets like India, where the Japanese carmaker had a leading position.

However, Suzuki filed for arbitration in November 2011 after the partnership failed.

The carmakers had agreed to work together on fuel-efficient cars, but Suzuki accused Volkswagen of withholding information it had promised to share.

Volkswagen, meanwhile, had objected to a deal Suzuki made to buy diesel engines from Italian carmaker Fiat.

In a statement, Suzuki said that it did not see a need to change its earnings forecasts for the business year ending in March 2016 in light of the share purchase.

Shares of Suzuki, Japan’s fourth largest carmaker, jumped as much as nearly 5% in Tokyo after the announcement.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

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