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Suzuki Motor Corp. rose in Tokyo trading after arbitrators told Volkswagen AG to sell its 19.9% stake in the Japanese carmaker, ending a four-year dispute over a failed partnership, according to Bloomberg.
Suzuki jumped as much as 4.6% to 4,340.5 yen and traded at 4,287.5 yen as of 9:09 a.m. It was the fourth-biggest gain among companies in the benchmark Nikkei 225 Stock Average, which fell 0.8%, Bloomberg reports.
VW will sell the holding after the arbitrators upheld Suzuki’s request to end the cooperation, the companies said in separate statements on Sunday. Suzuki said VW has to sell the stake -- valued at about 463 billion yen ($3.8 billion), based on Friday’s closing price -- back to the Japanese carmaker or a party of its choosing, while VW said the buyer hasn’t been decided.
Read alsoShanghai shares end week downThe end of the dispute provides Suzuki with the opportunity to find a new partner after the pact with VW failed to result in a single joint project.
The goal of the partnership was to cooperate on small, fuel-efficient cars for emerging economies, providing Suzuki with access to technology while giving VW a wider role in the Indian market through Suzuki’s business there. Relations soured in 2011 after the Japanese company agreed to buy diesel engines from Fiat. As trust broke down, the companies accused each other of breaching the accord.
Suzuki faces the prospect of having to pay damages after arbitrators ruled the Japanese company breached the agreement. The Hamamatsu-based company said it wouldn’t amend profit forecasts as a result of the ruling. It is pursuing a goal to boost annual revenue to 3.7 trillion yen by March 2020.
Volkswagen said it expects a “positive effect” on earnings and liquidity from the sale of the shares.