Ford Reduces Stake in Mazda; No Longer Largest Stakeholder

Ford Reduces Stake in Mazda; No Longer Largest Stakeholder

We’ve been hearing rumors for a while, but now it’s official. Ford will be cutting it’s stake in Japanese automaker Mazda, from 33 percent to just 11 percent.

The deal which is expected to be completed on Friday, will result in Ford becoming the fourth largest stakeholder in the company instead of the biggest, a title it has held since 1979. Back then; Mazda was struggling financially and Ford was willing to invest in the company, initially by taking a 25 percent stake, which was later raised to 33.4 percent; resulting in the American company taking controlling interest.

Now with Ford offloading 7.5 percent  of that interest (the shares will be transferred to Mazda’s business partners in off-auction trading through the Nikkei stock exchange); Chase Manhattan Bank is set to become the largest individual shareholder in the company. Nevertheless, both Ford and Mazda are adamant that the relationship they’ve forged over the last three decades will continue.

In a recent statement; Mazda’s CEO Takashi Yamanounchi declared; “Mazda and Ford will continue to collaborate on areas of mutual benefit such as key joint ventures, joint projects and exchange of technology information.”

[Source: Automotive News]