November 17 2008.

Suzuki Motor Corp.announced today that it has agreed to purchase all its shares owned by General Motors Corp., but stressed that the firms plan to continue their business alliance.

Under the agreement, GM will sell 16.41 million shares in Suzuki on the market Tuesday morning, and the Japanese firm will buy them back during off-hours trading on the Tokyo Stock Exchange the same day.

Suzuki will pay an estimated 22.3 billion yen to buy the 3% stake from the U.S. carmaker. It will finance the deal with its cash reserves.

"I fully understand GM's need to sell the stake to raise operating funds," Suzuki Chairman Osamu Suzuki said in a statement released Monday. "I have confirmed with GM Chairman Rich Wagoner that the two companies will continue their joint projects now in progress, so the planned share transaction will not affect Suzuki's business strategy in the near future."

Suzuki and GM have been in a financial and technical tie-up since 1981.

Source: Nikkie Net