Suzuki to buy back VW stake

Japanese car maker Suzuki, is to buy back the 19.9 per cent stake held by top shareholder Volkswagen AG for up to £2.53 billion, after an international arbitration court last month ordered the German automaker to sell its holding.

Suzuki said on Thursday it will repurchase as many as 122.77 million shares at Wednesday’s closing price of 3,842.50 yen per share for up to 471.74 billion yen (£2.53 billion) via the Tokyo Stock Exchange’s off-hours trading system before the market open.

Suzuki did not say what it planned to do with the stock.

Suzuki and Volkswagen agreed to tie up in December 2009, pledging to cooperate on technology and on expanding in emerging economies, but the alliance soon faltered. Suzuki filed for arbitration in November 2011.