Volkswagen puts its foot down in Porsche takeover deal
Posted by James Cox on Thursday, 5 Jul 2012, 17:30 in Automotive Industry
Volkswagen has announced that it hopes to complete its purchase of luxury car firm Porsche by the start of August. The German manufacturer said this morning that it would pay £3.6bn, as well as one ordinary VW share, to acquire the remaining 50.1 per cent stake in the company that it does not already own. The agreement was not due to be finalised until 2014, but the accelerated deal will reduce costs for both companies. The firms expect to make net synergies of about £256m. Hans Dieter Poetsch, chief financial officer of Volkswagen, said: "The accelerated integration will allow us to start implementing a joint strategy for Porsche's automotive business more quickly and to realise key joint projects more rapidly." Volkswagen bought a 49.9 per cent stake in Porsche in 2009, following a failed attempt by the sports car maker to takeover Volkswagen. Volkswagen is Europe's largest car manufacturer, producing some of the world's biggest automotive brands including Audi, Bugatti and Bentley.
