There’s been a lot of news about a possible break up of the merger between German VolksWagen and Japanese Suzuki. Last week Suzuki demanded an end to the deal, but VW officials say there’s no way they’re gonna sell their stake in Suzuki.
Now, Der Spiegel says not only is VW not gonna sell it’s Suzuki stocks, but it’s looking like they’re going for a hostile takeover!
Currently VW holds 19.9% stake in Suzuki, and under current contract could acquire a majority holding. But, under the current contact the same could be true for Suzuki taking over VW.
Such takeovers would require the consent of whoever is being taken over. Right now Suzuki wants out. Also, in the recent past VW officials say it’s become obvious that something was lost in translation concerning the partnership.
Originally VW officials thought Suzuki wanted German hybrid technology. VW thought it was a good opportunity to get into the booming Indian car market, because Suzuki already had a strong presence in India. Apparently that’s not what Suzuki had in mind.