A long running legal dispute between Suzuki and Volkswagen that followed an acrimonious break-up between the two former partners appears to be over, with VW being ordered to dispose of its 19.89% shareholding in Suzuki.
The dispute between the two OEMs stems from the breakdown of a deal in 2009 under which the two would collaborate in some areas alongside cross-shareholdings. However, the deal broke down acrimoniously with both sides accusing each other of breaching the agreement.
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VW held on to its stock in Suzuki, leaving Suzuki outside of potential collaboration or M&A discussions with other OEMs while the dispute remained in arbitration.
Suzuki filed for international arbitration in November 2011, after Volkswagen refused to sell back a 19.89% stake in Suzuki it acquired in January 2010 for EUR1.7bn (US$2.3bn).
The International Court of Arbitration of the International Chamber of Commerce has now ruled that the 'framework agreement' between VW and Suzuki was validly terminated by Suzuki.
Moreover, the ruling says that Volkswagen AG must dispose of its 19.89% shareholding in Suzuki “forthwith” to Suzuki or its designee, by a method to be reasonably determined by Suzuki.
Suzuki did, however, admit that VW's counterclaims were partially upheld.
Suzuki also said it does not foresee any need to amend its forecast of consolidated results for the fiscal year ending March 31, 2016.
