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Volkswagen AG plans to take a stake of up to 20 percent in Suzuki Motor Corp, providing Suzuki with a much-needed development partner and giving VW access to better small car technology.

Three sources with direct knowledge of the negotiations told Reuters of the impending deal. One said German group VW's stake could "easily" rise to a controlling holding of more than one-third in future.

"An announcement could come as early as this week," the source said. "This is the first step."



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Volkswagen Takes Steps To Gobble Up 20% Of Suzuki As Early As Next Week

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