Ford Reduces Stake in Mazda After Agreeing to sell 20% for $540million

Ford Logo & Mazda Logo

By Thami Masemola
November 18, 2008 2:05 PM
Filed Under: American, Corporate/Financial, Japanese, Mazda

At a time when trying to raise finance is like trying to raise Sarah Palin as a US Presidential candidate for 2012, Ford and Mazda have found a way to help Ford source money for its own growth. In a strategic move, Ford Motor Company will sell part of its shareholding in Mazda Motor Corporation, reducing current holdings from 33.4 percent to just over 13 percent.

"This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies," said Ford President and CEO Alan Mulally.

Ford and Mazda have been in partnership for over 30 years, and will continue to work together on sharing platforms and powertrains going forward. The stake in Mazda is being bought by Mazda itself as well as its strategic business partners.

Source: Mazda Motor Corporation via Jalopnik

Press Release (Click to expand)

Mazda Motor Corporation (Mazda) has announced today that Mazda and several of its strategic business partners will acquire a part of Ford Motor Company’s (Ford) shares in Mazda through market trading.

As a result, the ratio of Ford’s ownership of Mazda stock will be reduced from 33.4 percent to just over 13 percent, with the new agreement allowing the two companies to continue their strategic relationship that spans nearly 30 years.

“The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda’s strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives,” says Mazda’s Chairman, President and CEO, Hisakazu Imaki. “We will continue our strategic relationship through our ongoing joint ventures with Ford, as well as the sharing of platforms and powertrains.”

“This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies,” said Ford President and CEO Alan Mulally.

Ford’s sale of the Mazda stock will be achieved through Mazda and a group of Mazda’s strategic business partners each buying a portion of the shares.

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