Volkswagen to Take 49.9 Percent of Porsche

Things seem to come into place for German carmakers Porsche and Volkswagen, as the latter announced today it will begin the merger process by taking, at first, a 49.9 percent stake in Porsche. After a bitter fight earlier in the year, the stake to be taken by VW by the end of the year will signal the beginning of a new automotive group.

According to the initial estimates, Volkswagen will pay approximately 3.9 billion euros to take the respective shares. In 2010, Volkswagen will increase its share capital to refinance the financial efforts made for acquiring Porsche.

"This positive development for both companies, which is an expression of the compelling industrial logic behind the merger, is now to be underscored by a larger participation in Porsche AG," Volkswagen said in a release.

"Volkswagen is thus securing a higher share of the increase in the value of Porsche expected from the joint projects at an early stage. At the same time, Volkswagen remains committed to the phased integration of the two companies and is preserving the independence and the interests of Porsche."

The stake announced today is bigger than the 42 percent agreed upon by the two in the Comprehensive Agreement signed in August.

The rest of the merger schedule, VW says, will remain unchanged, with the complete merger of the two scheduled to take place in 2011. The manufacturer's shareholders will be asked to vote on the increase in capital scheduled for 2010 at the Extraordinary General Meeting on December 3.