Ford cuts Mazda stake and won't be largest shareholder
Companies promise to continue strategic partnership
Douglas A. Bolduc November 18, 2010 - 3:01 am ET
Ford Motor Co. announced today it will reduce its stake in Mazda Motor Corp.
to 3.5 percent from 11 percent. The transaction is expected to be completed
The U.S. automaker will become Mazda's fourth-largest stakeholder after
selling the shares, the Japanese company said today in a statement to the
Tokyo Stock Exchange. Ford has been Mazda's biggest shareholder since 1979.
"Both companies are committed to continuing our strategic partnership which
spans over 30 years," Mazda CEO Takashi Yamanouchi said in a statement.
"Mazda and Ford will continue to collaborate on areas of mutual benefit such
as key joint ventures, joint projects and exchange of technology
There has been speculation that Ford was looking to reduce its Mazda stake
to gain more flexibility in its Chinese operations.
Mazda said that the 7.5 percent stake that Ford will dispose of will be
transferred to Mazda's business partners via off-auction trading through the
Tokyo stock exchange.
Yamanouchi said that Chase Manhattan Bank, which had 7.1 percent of Mazda as
of Sept. 30, would likely move up to the top spot.
Ford took a 25 percent stake in a debt-ridden Mazda in 1979, lifting that to
a controlling 33.4 percent in 1996. In late 2008, it reduced its interest to
13 percent as it sought to raise cash. That stake fell to 11 percent when
Mazda issued new shares last year.
Bloomberg and Reuters contributed to this report
FORD PRESS RELEASE: Ford to Change Stake in Mazda; Both Companies Remain
Committed to Strategic Partnership
DEARBORN, Mich., Nov. 18, 2010 /PRNewswire via COMTEX/
-- Ford Motor Company
(NYSE: F) today announced it will change its stake in Mazda Motor
Corporation to 3.5 percent from 11 percent. The transaction is expected to
be completed Friday.
Ford said the decision to reduce its ownership stake in Mazda allows it to
increase flexibility as it continues to pursue growth in key emerging
markets. Ford said it plans to remain one of Mazda's largest shareholders
and remains committed to its strategic partnership with Mazda, which spans
more than 30 years.
Ford and Mazda will continue to cooperate in areas of mutual benefits such
as key joint ventures and exchange of technology information, Ford said.
MAZDA PRESS RELEASE: Ford to Change Ownership Stake in Mazda
- The two companies will continue their strategic partnership -
HIROSHIMA, Japan-Mazda Motor Corporation today received notification from
Ford Motor Company that Ford will transfer part of its shares in Mazda to
several of Mazda's business partners.
Ford's current stake in Mazda is 11 percent. After completion of the share
transfer, Ford will continue to be one of Mazda's largest shareholders with
a stake of 3.5 percent. In the best interests of Mazda's stakeholders and
other shareholders, the remaining 7.5 percent will be transferred to Mazda's
business partners via off-auction trading through the Tokyo Stock Exchange.
Mazda and Ford have agreed to continue their strategic partnership and this
change in shareholding will not affect Mazda's business direction or
"Ford will remain one of Mazda's largest shareholders with a 3.5- percent
stake, and both companies are committed to continuing our strategic
partnership which spans over 30 years," says Mazda's Representative Director
and Chairman of the Board, President and CEO, Takashi Yamanouchi. "Mazda and
Ford will continue to collaborate on areas of mutual benefit such as key
joint ventures, joint projects and exchange of technology information."
You can reach Douglas A. Bolduc at email@example.com.