Fiat plans to buy GM's share of VM Motori diesel joint venture

MILAN (Reuters) -- Fiat plans to take full control of the diesel engine manufacturer VM Motori by buying out the half of the company owned by General Motors.

VM Motori 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 is in line with the contracts Fiat entered into when it acquired a 50 percent stake in VM in 2010," Fiat said on Saturday.

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

Fiat did not give a value for the deal.

VM Motori, a 50-50 joint venture between Fiat and GM, is based in the northern Italian city of Cento.