Volkswagen Buys Nearly 20% of Suzuki
LONDON - December 9, 2009: Bloomberg News is reporting that "Volkswagen AG, Europe’s largest carmaker, has agreed to buy 19.9 percent of Suzuki Motor Corp. for 222.5 billion yen ($2.5 billion) to boost its presence in India."
The deal is subject to regulatory approval and will probably be completed by January, the companies said.
The reports states that the two carmakers will focus on “achieving synergies” in developing and manufacturing energy-efficient small cars in emerging markets. Suzuki controls Maruti Suzuki India Ltd., the maker of half of the cars sold in India. VW is the second- biggest overseas automaker in China, which is set to surpass the U.S. as the world’s largest auto market this year.