Ford to sell most of stake in Japan's Mazda
Sunday, 17 October 2010
TOKYO, Oct 16 (AFP): US carmaker Ford Motor has decided to sell the bulk of its 11 per cent stake in Japan's Mazda Motor and invest the money instead in emerging markets, reports said Saturday.
Ford, which has been the top shareholder in the Hiroshima-based automaker since 1979, plans to slash its current equity stake of 11 per cent to three percent or less, the Nikkei business daily said without naming its sources.
At times Ford has owned more than a third of Mazda, but started cutting its stake in 2008 in the wake of the global financial crisis.
The two firms have reached a basic agreement on the deal, Nikkei said. The Mazda shares held by Ford are worth a total of 42 billion yen (515 million dollars) based on Friday's closing price on the Tokyo stock market.
Jiji Press said Ford would use the money it gains through the sale to invest in emerging countries with high growth potential. The two companies are expected to make a formal decision in November, Jiji said.
Mazda, Japan's fifth largest automaker, declined to comment on the reports, saying they were "the result of speculation" by journalists.
"Mazda and Ford continue to enjoy a close strategic partnership and there is no change to this relationship. As before, we continue to cooperate in areas of mutual benefit. We do not comment on speculation," it said in a statement.
Ford, which has been the top shareholder in the Hiroshima-based automaker since 1979, plans to slash its current equity stake of 11 per cent to three percent or less, the Nikkei business daily said without naming its sources.
At times Ford has owned more than a third of Mazda, but started cutting its stake in 2008 in the wake of the global financial crisis.
The two firms have reached a basic agreement on the deal, Nikkei said. The Mazda shares held by Ford are worth a total of 42 billion yen (515 million dollars) based on Friday's closing price on the Tokyo stock market.
Jiji Press said Ford would use the money it gains through the sale to invest in emerging countries with high growth potential. The two companies are expected to make a formal decision in November, Jiji said.
Mazda, Japan's fifth largest automaker, declined to comment on the reports, saying they were "the result of speculation" by journalists.
"Mazda and Ford continue to enjoy a close strategic partnership and there is no change to this relationship. As before, we continue to cooperate in areas of mutual benefit. We do not comment on speculation," it said in a statement.