Having swallowed 19.9 percent of Suzuki in 2009, Volkswagen is now looking at Isuzu for its next meal, according to Reuters. Volkswagen is now mulling the purchase of all or part of Isuzu Motors, which is currently one of Japan’s largest truck manufacturers. Such a deal would put MAN, a German truck company which VW controls 30 percent of, at the helm of Isuzu.
Isuzu has a market cap of roughly $5.86 billion and traded for 292 yen per share on the Nikkei yesterday. At a cost of less than $6 billion, the purchase of Isuzu would be a relatively small bite for VW, Europe’s largest automaker. Reuters notes that the opportunity to purchase a stake in Isuzu comes at a time when Japan’s economic future is uncertain following the earthquake in March.
Reuters also notes that partnerships between European and Japanese automakers can be troublesome, citing the problems already encountered between VW and Suzuki as well as the 12-year-long partnership between Renault and Nissan that produced mixed results.
Whether or not VW is genuinely interested in Isuzu, Suzuki probably won’t be the last of the company’s acquisitions, as it aspires to eventually overtake Toyota as the world’s largest automaker.