Volkswagen will merge in the end with Porsche

Volkswagen supervisory board meeting in Stuttgart in southwestern Germany, approved the creation of an integrated group together with Porsche, according to a communication company. Porsche already approved the project during the day Thursday.

"The group is integrated self to being the gradual takeover of shares in the merger of Porsche and all of Porsche SE and Volkswagen AG, announced a major European car manufacturer.

In the operation, Qatar will take a 17% stake in the Volkswagen, announced the company's executive director, Martin Winterkorn. Emirate of Qatar to take a stake in the Porsche, which will make a capital increase of at least 5 billion euros.

Porsche, which holds 51% of Volkswagen, has not given details of the capital increase announced, which hopes to obtain cash to pay that part of the debts of 10 billion euros.

All transaction details will be presented at a meeting of the Supervisory Board of August 13, Winterkorn also announced.

For several months, the merger between Porsche and Volkswagen is a major topic of contention between the two groups within the Porsche-Piech family that controls Porsche up to 100%.

Initially, Porsche would have to take control of Volkswagen group by buying a 75% interest in the company, but in May, Porsche was obliged to acknowledge their failure, based on the financial crisis and the decline of sales of automobiles.

Source: http://www.volkswagen.com

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