Life & Style | Motoring

Ford abandons Mazda control with 20 per cent stake sale

Ford Motor Co, scrambling for cash as the US Big Three automakers struggle to stay alive, will end 12 years of control of Mazda Motor Corp through the sale of a 20 per cent stake in the Japanese carmaker for around $540 million.

  • Agencies
  • Published: 17:31 November 18, 2008
  • Gulf News

Tokyo: Ford Motor Co, scrambling for cash as the US Big Three automakers struggle to stay alive, will end 12 years of control of Mazda Motor Corp through the sale of a 20 per cent stake in the Japanese carmaker for around $540 million.

Ford will remain Mazda's top shareholder with a stake of just over 13 percent.

Mazda, in which Ford first took a stake in 1979, said on Tuesday it would buy back 6.87 per cent of its own shares from Ford for up to 17.9 billion yen ($185 million), keeping them as treasury stock.

More than 20 undisclosed business partners will purchase the remaining 13 per cent, Mazda said.

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