Malaysian conglomerate DRB-Hicom on Tuesday said it had agreed to form a joint venture with Suzuki Motor and Itochu to promote and sell Suzuki vehicles in Malaysia.
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According to Dow Jones, DRB-Hicom – a Suzuki distributor through wholly owned unit Suzuki Malaysia Automobile – said that the new agreement calls for Suzuki Motor and Itochu to subscribe to new Suzuki Malaysia shares.
Suzuki Motor will pay MYR14m for a 40% stake in Suzuki Malaysia while Itochu, a trading firm, will pay MYR7m for a 20% stake. DRB-Hicom will hold the remaining 40%.
“The proposed joint venture displays Suzuki’s strong commitment to strengthen its relationship with DRB-Hicom in the marketing, distribution and assembly of Suzuki vehicles in Malaysia and to widen its product range and models in Malaysia,” DRB-Hicom told Dow Jones.
It added that it expects the joint venture to be formed in the first quarter of this year.
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By GlobalDataDow Jones noted that Suzuki was the 12th best-selling brand in Malaysia last year, selling 2,583 units for a 0.6% share of the country’s passenger car market.
