In late July Porsche announced Wendelin Wiedeking would be leaving his position as the company’s CEO to be replaced by Michael Macht, clearing the way for the supervisory board at Volkswagen to lay the foundation for an integrated company with Porsche under Volkswagen leadership.
This week, Volkswagen announced that it will take a 49.9 percent stake in Porsche, in a first step towards an integrated automotive group with the sports car company. This was agreed between Volkswagen and Porsche during negotiations on the contracts of implementation relating to the merger of the two companies.
The timetable for the creation of the integrated group remains unchanged: Volkswagen will acquire a participation in the operating business of Porsche by the end of 2009. The merger of the companies is still scheduled to take place during the course of 2011.
Based on the enterprise value calculated for Porsche, Volkswagen is expected to pay approximately €3.9 billion (R44.1 billion) for the participation in the company.
For worried Porsche fans, Volkswagen has stated that it remains committed to the phased integration of the two companies and to preserve the independence and the interests of Porsche.
Adapted from MotorAuthority
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