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GM buys additional shares in GM Daewoo

General Motors has paid Suzuki Motor Corporation $21 million (£11.7m) for 6.9m shares to increase its stake in GM Daewoo Auto & Technology Corporation to 50.9%.

GM’s new investment in the Korean subsidiary followed a $49 million (£27.3m) share purchase in February this year that raised its stake to 48.2%.

The financial results of GM Daewoo will be consolidated in GM’s results. GM spent $251 million (£140m) in 2002 for its initial portion of GM Daewoo, sharing the firm’s equity with the group of Korean banks that had controlled the firm following its collapse, and with minority investors Shanghai Automotive Industry Corporation and Suzuki.

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