Late last week, Volkswagen announced it has reached a deal with Porsche and set the basis for the future integrated automotive group. The manufacturer gave little details regarding the merger, but some aspects of the deal, including the Qatar involvement as a "strategic partner".
Financial Times Deutschland said, citing an inside source,that Volkswagen will pay some 8 billion euros for Porsche. At first, it will purchase only 50 percent of the company, with the rest to follow in 2011.
According to the source, Volkswagen's financial reserves amount to 11 billion euros, making the sum to be paid for Porsche affordable. In addition, Porsche is said to seek an extra 5 billion euros for its merger with Volkswagen.
Neither Volkswagen nor Porsche have confirmed the reports in German media. A final conclusion is expected to be reached on August 13, when the boards of the two automakers are to meet. So far, the two sides seem pleased with their plan.
"The envisaged union of Volkswagen and Porsche follows a compelling industrial logic and offers promising perspectives: it makes two strong companies even stronger. Volkswagen and Porsche have excellent know-how at their disposal and can use their resources even more efficiently by combining them. For this reason, we expect additional growth opportunities, safeguarding existing jobs and creating new ones," Martin Winterkorn, Volkswagen chairman of the board said in a release.
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