TOKYO: Suzuki Motor Corp has announced it will buy back the 19.9 percent stake it sold to Volkswagen AG after an international arbitration court settled a dispute between the automakers over their failed partnership.
Suzuki filed for international arbitration in November 2011, after Volkswagen refused to sell back the shares in Suzuki it acquired in January 2010 for 1.7 billion euros (RM8bil).
The stake was worth some US$3.8bil (RM16bil) at Friday's closing price.
Both companies said they welcomed the clarity offered by the ruling from the International Court of Arbitration of the International Chamber of Commerce, which partially upheld the German company's counterclaims of breach of contract.
"It used to feel as if a small bone were stuck in my throat," Suzuki chairman and chief executive Osamu Suzuki told a news conference. "I feel so refreshed now."
Suzuki said it foresees no impact on its full-year earnings.
VW said in a statement it would not know the impact on its balance sheet or profits until it has coordinated the sale of the Suzuki shares. "We have already retained an investment bank and will in the next few days consult with the bank and our lawyers over the next steps to be taken."
Suzuki said it expects to buy back its shares at a "reasonable" price, though it did not specify what that price would be.
The two carmakers agreed to tie up in December 2009, pledging to cooperate on technology such as hybrid and electric cars and on expanding in emerging economies.
But the union soured as Suzuki accused VW of withholding hybrid technology it promised to share. VW, in turn, objected to Suzuki's purchase of diesel engines from Fiat.
