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Volkswagen buys stake in Suzuki

Wed, 09 Dec 2009

Volkswagen will buy nearly 20 percent of Suzuki for $2.5 billion in a deal poised to continue VW's ambitious growth plans and bolster its global product offerings.

The companies announced the agreement on Wednesday, and it could close in January. The deal allows VW to draw on Suzuki's small-car capabilities and strong position in India. Also, it fortifies VW as it takes aim at the title of world's largest automaker, though Suzuki CEO Osamu Suzuki has been vocal about his company not becoming another VW brand.

Under terms of the deal, Suzuki will use about half of the money from VW to buy shares of the German carmaker.

VW also recently purchased 49.9 percent of Porsche AG.

By Greg Migliore