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HAMAMATSU, Japan, June 27 (Reuters) - Japan's top minivehicle maker, Suzuki Motor Corp , said on Thursday it would take a 14.9 percent stake in a new Daewoo Motor, a move that should help it expand in Asia and share vehicle development costs.
Suzuki said it would pay up to $89 million for the holding, joining partner General Motors Corp in its efforts to rebuild the failed South Korean automaker, to be called GM Daewoo Auto and Technology.
"We had to make a quick decision about Daewoo. We figured we could iron out the details later," Suzuki Chairman Osamu Suzuki told a news conference.
Suzuki, which is 20 percent owned by GM, said in a statement it would pursue sharing parts with GM and the new Daewoo as well as developing vehicles together.
In April, GM agreed to capitalise the new company through a $251 million cash investment, giving it the largest stake of 42.1 percent, while its business partners would hold 24.9 percent.
Altogether, the investment by GM and its partners is expected to total $400 million.
The new Daewoo will operate two plants in South Korea and a car factory in Vietnam. It will also take over eight sales units outside South Korea -- seven in Europe and one in Puerto Rico -- as well as a parts unit in the Netherlands.
Although the reported size of Suzuki's stake is larger than had been first expected, analysts have generally reacted positively, saying it would allow the small car maker to expand in Asia for a relatively small investment.
Shares in Suzuki ended the day up 0.42 percent at 1,446 yen.
The Nikkei 225 share average rose 1.86 percent.