VW Rumored to Complete Porsche Takeover This Year

The history VW shares with Porsche is long, and we’re not talking about carmaking in the days of fascism. The two companies originally intended to merge together before Porsche attempted and failed a hostile takeover in 2009. This almost toppled their finances, as they collected €10 billion in debt, and VW had to come to the rescue.
The plan was then changed, and the two companies were supposed to join last year, but it was abundantly clear this wasn’t going to happen due to the ongoing lawsuits. Now, the German media publication Der Spiegel is reporting that VW intends to complete the process of buying up the remaining 50.1% of Porsche for €3.9 billion.

In order to save money on taxes, VW will establish a holding company that will temporarily take control of the remaining stake before the merger is approved by regulators. Knowing how hard a complete takeover can be and how some holders tend to disagree on the price, especially now when Porsche’s prospects are looking brightest, we wouldn’t be so sure.

“Of course, all the parties are interested in achieving the goal of an integrated automotive group as soon as it makes economic sense to do so,” Christine Ritz, a VW spokeswoman, said in a telephone interview with Bloomberg. “As soon as we have made a decision to achieve that goal, we will communicate that.”

VW, who owns 49.1 percent of Porsche, might forgo the merger and instead buy up Porsche’s carmaking business.

“As we said in September, we want to check alternatives and that process is ongoing,” Frank Gaube, a Porsche spokesman, said by telephone, declining to comment further.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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