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Suzuki soars on news VW must sell stake

Suzuki soars on news VW must sell stake
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Japanese arbitrators have ruled in Suzuki’s favour and ordered German carmaker Volkswagon to sell its 19.9% stake in the company.

Suzuki’s shares soared on the news, but the arbitrator also found Suzuki to be in breach of contract, and it will have to pay damages.

The ruling ends a four-year dispute over the failed partnership, which failed to produce any joint products. Suzuki was looking for VW’s technology, while VW was looking to piggyback Suzuki in the Indian market, where it is well-established. VW will have to sell back to Suzuki or a third party they can mutually agree on.