TOKYO (Dow Jones)--General Motors Corp. (GM) has decided to allocate its 7.9% stake in Isuzu Motors Ltd. (7202.TO) to Mitsubishi Corp. (8058.TO), Itochu Corp. (8001.TO), and Mizuho Corporate Bank, Kyodo News reported, citing sources familiar with the matter.
The deal is due to be announced Tuesday afternoon, thus ending the capital alliance between the two companies dating back to 1971, according to the sources.
Mitsubishi and Itochu will each receive 3.5%, and Mizuho will get 0.9%, Kyodo reported.
GM, which in effect has been the top shareholder in Isuzu with holdings of about 90 million shares, says it will continue its collaboration with the Japanese truck maker in the engine development and other fields, the sources added.
GM and Isuzu have been negotiating the deal with the three prospective buyers, with which the Japanese truck maker has close business ties. Mitsubishi and Itochu, for example, sell Isuzu trucks abroad and Isuzu wants to further strengthen relations with the two major trading houses in this area, Kyodo reported.
The U.S. automaker offloaded its entire 20% stake in Fuji Heavy Industries Ltd. (7270.TO) last October. It then reduced its stake in Suzuki Motor Corp. to 3% from 20% in March.
GM's capital ties with Japanese carmakers, which have been cultivated since the 1970s, will be all but over with the sale of the Isuzu stock.