Volkswagen set to pay $2.5bn for Suzuki stake

Volkswagen Group seems to be on a mission to take over the automotive world and is set to take a 20 percent stake in Suzuki Motors.

Volkswagen is said to be paying $2.5bn (£1.5bn) for the stake which will create one of the world's largest car manufacturer alliances. On Wednesday Suzuki's chief executive Osamu Suzuki confirmed the rumours that the groups had been in negotiations.

The two companies will buy each others shares and "respect each others independance as a standalone entity".

The deal should be done by January with Suzuki then buying up to Y50bn (£350m) of Volkswagen shares to seal the mutual agreement.

In the same week, Peugeot Citroen (PSA) announced it was considering buying a stake in Mitsubishi Motors as part of an expanded partnership.