Volkswagen takes 49.9 percent stake in Porsche AG

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Last year everything pointed to a Volkswagen getting swallowed by a much smaller Porsche. Unfortunately for Porsche their plan did not go through as they ended up in huge debt, despite of the fact that they owned 51 percent of Volkswagen.

So the tables turned and the two companies are integrating. Volkswagen Aktiengesellschaft yesterday finally took 49.9 percent stake in Porsche AG. The price for the stake is €3.9 billion and is based on the enterprise value for Porsche AG calculated under a careful due diligence and valuation procedure.

The acquisition of the trading business of Porsche Holding Salzburg is planned for 2011. The creation of the integrated automotive group is then to conclude with the merger of Volkswagen AG and Porsche SE during the course of the same year.

The combination of the two companies follows a compelling strategic, industrial and financial logic. For the Volkswagen Group, Porsche ideally complements the brand portfolio.

With Porsche and Volkswagen in the same boat that means the same synergy will continue even more and we can see more technology sharing in the very near future. Volkswagen also expects to increase its profit by some €700 million a year in the long term thanks to this merger.