It was Porsche that originally tried to buy Volkswagen, now its Volkswagen buying Porsche, not all of it of course but just 0.1 per cent short of half ownership.
The agreement was finally reached after extensive talks between the two companies. As it stands now Volkswagen will acquire a “participation” in the operating business of Porsche by the end of 2009 whilst the complete merger will take place during the course of 2011.
Merging Porsche and Volkswagen was an inevitable matter, it was only a case of who was going to own who. Not that it matters now, both companies have already been able to leverage each other’s great technological innovations to create better and more efficient car and the merger will see that cooperation increase even further.
The original agreement seen earlier this year suggested Volkswagen would only take a 42 per cent stake, however Volkswagen believes the partnership will be strong and hugely beneficial thus securing a higher share of Porsche expected from the joint projects.
The People’s Car brand says it will stay committed to a phased integration of the two companies and will preserve the independence and the interests of Porsche.
As for the dollars involved, Volkswagen is expected to pay approximately EUR 3.9 billion ($6.3 billion) for the plan to go ahead.
The company will raise this amount via an increase in Volkswagen’s preferred share capital planned for the first half of 2010.