Volkswagen and Porsche have finalised plans which will see Volkswagen AG purchasing the remaining 50.1 per cent of Porsche SE on August 1. The German giant will buy Porsche for $5.44 billion.
Porsche originally planned to purchase Volkswagen a few years ago, however, after borrowing a tonne of money and accumulating taxes a final deal has been an ongoing process, with legal hurtles slowing things down.
According to the details, the company’s lawyers have found loopholes which will allow Volkswagen to avoid the taxes. Volkswagen will apparently buy Porsche via a restructuring process rather than a takeover. CFO Hans Dieter Potsch recently aid,
“The accelerated integration will allow us to start implementing a joint strategy for Porsche’s automotive business more quickly, to realise key joint projects more rapidly, and hence to leverage additional growth opportunities in attractive market segments.
“It will also enable Volkswagen AG and Porsche AG to concentrate fully on their operating business by making day-to-day cooperation much simpler.”
Meanwhile, Volkswagen CEO Martin Winterkorn has said,
“We can now cooperate even more closely and jointly leverage new growth opportunities in the high-margin premium segment. Combining their operating business will make Volkswagen and Porsche even stronger – both financially and strategically – going forward.”
The deal will add another vehicle brand to Volkswagen’s impressive collection; Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen.