Volkswagen has taken over 49.9% of Porsche, for 3.9 billion euros

Volkswagen, the largest car manufacturer in Europe, has bought 49.9% stake in Porsche sports car manufacturer, for 3.9 billion euros, will take over the whole company by 2011, the German auto group announced Monday.

Volkswagen announced in August that will take until 2011 Porsche brand. The transaction gives Porsche worth 12.4 billion euros. The acquisition will be financed partly through a capital increase, given that Volkswagen does not want to reduce liquidity.

Shareholders car manufacturer approved Thursday a massive increase in capital will allow the market to gather around 8 billion by 2014.

Porsche is thus a tenth of the Volkswagen brand, will contribute to the efforts of the German group to become the largest car manufacturer in the world by 2018. Leadership of the global auto market is occupied today by Toyota.

With regard to Porsche, the operation will enable to achieve economies of scale in the Volkswagen and access to technologies developed for other brands of the group.

The merger between Volkswagen and Porsche ended several months of tensions between the two groups, generated by the ambition to take control Volkswagen Porsche. The two groups have, in fact, common origin, as a result of car empire built by Ferdinand Porsche in the first half of last century.

Source: http://www.volkswagen.com/

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