Volkswagen and Porsche Merge

Volkswagen has announced the final terms of the merging of Volkswagen and Porsche companies that looks more like an ultimatum to Porsche. Volkswagen will pay an amount of 3 to 4 billion euros to Porsche, after which the two automakers will proceed to merging, transmits Reuters.


As a result of the deal, the shares of the ownership will be distributed as follows: 40 per cent of the shares will go to Porsche and the family Pitch that owns it, 20 per cent will go to the owners of the land of Lower Saxony, a major holder of shares of Volkswagen, 15 per cent of the shares will become the property of Qatar, that wishes to make a partial investment in the deal, and 5 per cent will go to an unnamed investment fund. And nothing is reported about what will happen to the remaining 20 per cent.

Management of Porsche has to decide whether it agrees to such an option or not until the end of July of this year. In case of a negative decision from the part of Porsche, the management of Volkswagen will require payment of the loan of 700 million euros provided by VW to Porsche in order to stabilize its financial situation.

It should be recalled, that Porsche, which is a relatively small producer of sports cars, has pursued an ambitious goal of absorption of the largest auto concern in Europe over the past years.


Last autumn, Porsche announced that it had acquired options to buy 75 per cent stakes of Volkswagen, but it still owns only 51 per cent of securities of the group. In pursuit of its aim Porsche gained a debt of 9 billion euros, and was forced to abandon the idea of full control of VW.

Instead, the companies have agreed to merge, the exact formula of which has not yet been able to be developed.

Volkswagen and Porsche Merge
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