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.
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.”
