The German vehicle manufacturer Volkswagen will acquire a 19.9 percent stake in the Japanese Suzuki Motor Corporation as part of a transaction valued at $2.5 billion, the two companies announced on Wednesday.
The largest European vehicle manufacturer, Volkswagen, will purchase a 19.9 percent stake in Suzuki, which will use half of the proceeds from the sale of shares to buy VW shares. The independence of both companies will be maintained within the partnership, Volkswagen stated. VW noted that the transaction still needs to be approved by competition authorities and is expected to be finalized by January 2010. A spokesperson for Suzuki in Tokyo also mentioned that the connection still needs to be finalized. The two companies will hold a press conference during the day in Tokyo. The partnership with Suzuki, known for producing small SUVs and engines, will enhance Volkswagen’s position in the Asian market. Speculation about the partnership between Volkswagen and Suzuki emerged a few months ago. (H)
