Japan's Suzuki Motor Corp said on Sunday it will buy back the 19.9 percent stake it sold to Volkswagen AG after an international arbitration court settled a dispute between the automakers over their failed partnership. Suzuki filed for international arbitration in November 2011, after Volkswagen refused to sell back the shares in Suzuki it acquired in January 2010 for 1.7 billion euros ($1.90 billion).
The Japanese carmaker said the International Court of Arbitration of the International Chamber of Commerce partially upheld the German company's counterclaims of breach of contract and that any damages would be settled later.
Suzuki said it foresees no impact from the settlement on its full-year earnings.
"It used to feel as if a small bone were stuck in my throat... I feel so refreshed now," Suzuki Chairman and Chief Executive Osamu Suzuki said at a press conference following the company's announcement of the settlement. In a statement, VW said "We welcome the fact that there is now clarity. The co-operation between the two companies has now been ended."
According to Suzuki's corporate website, VW held 111.61 million Suzuki shares as of March 31, valued at about 463 billion yen ($3.81 billion) based on Friday's closing price of 4,151.5 yen. Suzuki said it expects to buy back its shares at a "reasonable" price, though it did not specify what that price would be.
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