Sumitomo in final talks for more stake in Mazda: report

BANGALORE (BestGrowthStock) – Sumitomo Corp (8053.T: ) is in the final stages of talks to buy an additional stake in Mazda Motor Corp (7261.T: ) from Ford Motor Co (F.N: ), the Nikkei business daily reported.

The trading house, which holds about 0.4 percent stake in Mazda, is expected to buy about another 1 percent in the Japanese automaker, the paper said.

Sumitomo’s business with Mazda is estimated at nearly 100 billion yen ($1.23 billion) a year, with 50 billion yen involving exports of Mazda vehicles to South America and elsewhere. The rest comes from other deals, such as procurement of steel and parts for the carmaker, the paper said.

Ford, which plans to reduce its ownership in Mazda to about 3 percent or less from the current 11 percent, approached companies and financial institutions that have close ties with Mazda, the Nikkei said.

Sumitomo Mitsui Banking Corp is also considering buying Mazda shares, a move that would add to its existing 2.9 percent stake, the business daily reported.

($1=81.12 Yen)

(Reporting by Abhinav Sharma in Bangalore; Editing by Maju Samuel)

Sumitomo in final talks for more stake in Mazda: report