Volkswagen Agree EUR 3 B Porsche Merger Deal

Over the past year Porsche built up major debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds. Photo by varnavto.com

Volkswagen (VW) and Porsche have agreed the details under which VW will merge with its German compatriot by 2011.

Under the deal, VW will initially buy a 42% stake in Porsche by the end of this year for EUR 3,3 B.

The deal ends months of acrimony between the two firms, and concludes Porsche's failed efforts to buy VW, the BBC reported.

Over the past year Porsche built up major debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds.

Porsche's failure to buy VW saw the firm's former chief executive Wendelin Wiedeking and financial director Holger Haerter resign "with immediate effect" last month.

Porsche will now effectively become the 10th brand in the VW family, joining the likes of Audi, Seat and Skoda. The deal values Porsche at EUR 12,4 B.

 

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