TOKYO (XFN-ASIA) - Suzuki Motor Corp is merging its motorcycle and automobile subsidiaries in Pakistan, the Nikkei Business Daily reported, without citing sources.
Pak Suzuki Motor Co will absorb Suzuki Motorcycles Pakistan Ltd this fiscal year pending approval from the high court of the province of Sindh and shareholders' meetings for the two companies slated to be held in the near future, the newspaper said.
Pak Suzuki was established in 1982 as a joint venture with a Pakistani government institution. Suzuki currently has a 73 pct stake. It manufactures and sells 800cc vehicles based on the old Suzuki Alto, and produced 108,000 units in fiscal 2006.
Suzuki has a 43 pct stake in the motorcycle subsidiary with the local automobile unit holding a 41 pct stake. In fiscal 2006, the company made 24,000 motorcycles.
Pak Suzuki has a 53 pct share of the Pakistani market, while Suzuki Motorcycles Pakistan only has 5 pct market share.
(1 usd = 121.35 yen)
yasuhiko.seki@xfn.com
ys/mas