Mazda ups stake in China sales venture with FAW

Mazda Motor Corp said on Thursday it had lifted its stake in a Chinese sales company to 40 percent from 25 percent for 49.5 million yuan ($7.26 million) in a move that would give it bigger dividends from its profitable Chinese business.

The Japanese automaker raised its stake through a third-party allocation of new shares by the venture, FAW Mazda Motor Sales Corp, Mazda said in a statement.

As a result, the combined stake held by partners First Automotive Works and its unit FAW Car Co would fall to 60 percent from 75 percent.

Mazda has been looking to boost its stake in the sales company for at least a year and had been waiting for government approval.

FAW Mazda Motor Sales is one of Mazda's two Chinese sales companies and distributes the Mazda6, Mazda5, Mazda3 five-door hatchback and RX-8 sports car models. It also has a three-way venture with Changan Automobile Co and Ford Motor Co.