Porsche will officially become part of the Volkswagen stable next month after the two German automotive powerhouses agreed to a deal overnight.
Volkswagen AG will acquire the remaining 50.1 per cent stake in Porsche Automobil Holding SE’s car making business for 4.46 billion euros ($5.44 billion) on August 1, adding to the 49.9 per cent stake it purchased in 2009 following Porsche’s own failed takeover of Volkswagen in the wake of the global financial crisis.
The Financial Times explains the announcement of the deal comes after months of evaluation from the companies’ lawyers, who identified a loophole allowing Volkswagen to dodge a potential one billion euro ($1.2 billion) tax bill by classifying the purchase as a restructuring rather than a takeover.
The loophole means the deal will be finalised roughly two years earlier than may have otherwise been the case.
Volkswagen CEO Martin Winterkorn said he was pleased with the fast-tracked deal that will allow Volkswagen and Porsche to streamline their businesses sooner and work closer together on future “high-margin premium” projects.
“The unique Porsche brand will now become an integral part of the Volkswagen Group – that is good for Volkswagen, good for Porsche and good for Germany as an industrial location,” Winterkorn said.
Volkswagen has always had a close relationship with Porsche. The Porsche Cayenne, Volkswagen Touareg and Audi Q7 large luxury SUVs share a common architecture, as will the smaller Porsche Macan and Audi Q5 when the former launches late next year.
The Volkswagen Group comprises 12 active automotive and motorcycle companies: Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat, Skoda, Volkswagen passenger cars and commercial vehicles, Scania and Man.