Italy's Fiat to take full control of VM Motori

MILAN Sat Sep 21, 2013 1:30pm EDT

A Fiat logo is seen on a car during a press preview at the 2013 New York International Auto Show in New York, March 28, 2013. REUTERS/Mike Segar

A Fiat logo is seen on a car during a press preview at the 2013 New York International Auto Show in New York, March 28, 2013.

Credit: Reuters/Mike Segar

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MILAN (Reuters) - The Italian carmaker Fiat FIA.MI is planning to take full control of the diesel engine manufacturer VM Motori by buying out the half of the company owned by joint venture partner General Motors (GM.N), Fiat said on Saturday.

VM Motori, based in the northern Italian city of Cento, is currently a 50:50 JV between Fiat and GM.

The plant supplies engines for various car models, including the Jeep Wrangler and Jeep Grand Cherokee.

"GM's notification to exercise its put option to sell to Fiat its 50 percent interest in VM Motori SpA is in line with the contracts Fiat entered into when it acquired a 50 percent stake in VM in 2010," Fiat said in an emailed statement.

"The transaction's satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals."

The company did not give a value for the deal.

(Reporting by Jennifer Clark, writing by Agnieszka Flak; Editing by Kevin Liffey)

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