TOKYO— Suzuki Motor Corp. has agreed to sell its 1.5% stake in Volkswagen AG to Porsche Automobil Holding SE , the German auto maker’s biggest shareholder, Suzuki and Porsche SE said Saturday, without disclosing the transaction price.

Suzuki, which holds the stake in Volkswagen as a part of a failed partnership with the German auto maker, will transfer the shares to Porsche SE on Wednesday, the Japanese auto maker said in a statement. As a result of the sales, Suzuki will post ¥36.7 billion (US$304 million) in special profit, it said.

Porsche Automobil Holding SE manages assets held by the Porsche and Piech families—descendants of Ferdinand Porsche, the inventor of the Volkswagen Beetle—and controls more than 50% of Volkswagen’s voting stock.

The agreement largely ends a failed tie-up between Volkswagen, one of the world’s biggest auto makers, and Suzuki, a second-tier Japanese auto maker focusing on small cars, following four years of arbitration.

Over the past week, Volkswagen has lost a third of its value in the wake of an emissions scandal involving its diesel cars. Despite the plunging stock price, Suzuki said this week that it still intended to shed its stake in Volkswagen.