On September 26, Suzuki announced that it had made a contract to sell all of its Volkswagen stocks to Porsche Automobil Holding.
In 2009, Suzuki and Volkswagen entered into a capital and business partnership to work together on a technical level and the two companies purchased each other’s stock. However, differences of opinion arose between the companies and in November 2011, Suzuki called off the alliance, filing with an international arbitration court.
Last month, the arbitration case was settled. Suzuki bought back 111,610,000 yen in stocks Volkswagen was forced to dispose of.
The current announcement is that Suzuki sold 4,397,000 Volkswagen common shares it owns. The payee is Porsche Automobil Holding which will now hold a majority of Volkswagen stocks. The selling price hasn’t been published but according to Suzuki, it will post about 3.67 billion yen ($304 million) in special profit.
Suzuki says, “We are posting about 3.67 billion yen in special income for the March 2017 2nd quarter period.”
(Translated by Greg Scott)