Tribunal seals end of failed Volkswagen-Suzuki partnership, Suzuki to buy back …

31 Aug 2015 | Author: | No comments yet »

Suzuki Motor Corporation: Notification Concerning Arbitration Award.

Tokyo/Berlin: Volkswagen will sell a Suzuki Motor Corp. stake valued at about 463 billion yen ($3.8 billion, Dh13.95 billion) following a decision from arbitrators that ended a four-year dispute over a failed partnership.Nearly four years after Suzuki started proceedings in London, Suzuki said the arbitrator found that the alliance between the two companies had ended in May 2012, the Japanese auto maker said in a statement. VW will sell its 19.9 percent holding after the arbitrators upheld the Japanese automaker’s request to end the cooperation, the companies said in separate statements on Sunday.

Suzuki <7269.T> 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 ($1.90 billion). If there are any discrepancies between this document and the original Japanese document, the original Japanese document prevails.) As Suzuki Motor Corporation (“Suzuki”) received an award on 29 August 2015 regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you as follows: The Framework Agreement between Volkswagen AG (“VW”) and Suzuki was validly terminated by Suzuki’s notice of termination dated 18 November 2011, such termination being effective from 18 May 2012.

Volkswagen AG must dispose of its 19.89% shareholding in Suzuki forthwith to Suzuki or its designee, by a method to be reasonably determined by Suzuki. The end of the dispute provides Suzuki with the opportunity to find a new partner, after its cooperation with Volkswagen failed to result in a single joint project. Takaki Nakanishi, chief executive of Nakanishi Research Institute, which specialises in the automotive industry, said “It seems highly likely it will buy back at the Friday closing price.” 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. As trust broke down, the companies accused each other of breaching the accord. “After their irreconcilable quarreling, the separation was unavoidable,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen “Mr. Suzuki said that Volkswagen has to sell the stake back to them or a party of the Japanese company’s choosing, while Volkswagen said the buyer of the stake hasn’t been decided yet.

At this stage, Suzuki does not foresee any need to amend its forecast of consolidated results for the fiscal year ending March 31, 2016, however, if any matters that need to be disclosed occur, such matter will be promptly disclosed.

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