Volkswagen takes 49% stake in Porsche

Volkswagen has completed an agreement to take a 49.9% stake in Porsche AG, clearing the way for the two brands to merge and former an integrated company.

Volkswagen

In a statement, Volkswagen says, “the next important step on the way towards the integrated automotive group with Porsche has been completed, as announced, before the end of the year.”

The price for the stake is €3.9bn (£3.5bn) and follows a long period of due diligence and valuation procedures.

The company now plans to complete its acquisition of Porsche Holding Salzburg in 2011. It says the creation of the integrated automotive group will conclude with the merger of Volkswagen and Porsche during the course of the same year

The VW Group says the merger will allow Volkswagen to further expand its position in the premium business, which offers particularly strong earnings and offer Porsche the potential for significant additional growth. As a result, the annual operating profit of the Volkswagen Group is expected to increase by some €700 million in the long term.

The statement adds: “Following the comprehensive agreement concluded in August, the implementation agreements signed in November and the Volkswagen Extraordinary General Meeting held last week, the stake in Porsche represents the next milestone on the way towards the integrated automotive group with Porsche under the leadership of Volkswagen.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here