General Motors has announced the sale of its 20 percent equity stake (about 157 million shares) in Fuji Heavy Industries (FHI). The alliance between GM and FHI will end and GM will refocus its efforts and resources in the Asia Pacific region’s high-growth markets.
Toyota Motor Corporation will purchase 68 million shares, or approximately 8.7 percent, of FHI shares outstanding from GM for JPY 520 ($4.60) per share, or about $315 million in cash. GM intends to divest its remaining 11.4 percent interest by offering for sale its shares (89 million shares) into FHI’s 90 million share open-market buyback program, and through market sales if necessary.
“We’ve had a good partnership; however both GM and FHI came to the conclusion that there were not enough collaborative projects to sustain the alliance and that each of our interests could be better served through a different approach,” said Troy Clarke, GM group vice president and president, GM Asia Pacific.
Since GM acquired a stake in FHI in 2000, the companies have been involved in various joint projects in product development, advanced technology, global purchasing and supply chain management, and product distribution. GM currently partners with FHI on one production vehicle, the Saab 9-2x, which will continue.
Other joint arrangements with FHI will be dissolved over time. GM and FHI’s previously announced Saab crossover vehicle development program will be cancelled.The divestiture of GM’s stake in FHI is expected to be completed in the fourth quarter.