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VW acquires 49.9% stake in Porsche

 

German auto maker Volkswagen has acquired a 49.9 per cent stake in luxury sports carmaker Porsche

The deal was sealed for 3.9 billion euros ($NZ8.1billion).

Last week, Volkswagen shareholders approved a capital increase aimed at financing the purchase. The vote will allow Volkswagen to raise about 8 billion euros ($NZ16.6 billion) by 2014.

Europe's biggest automaker plans to complete the takeover of Porsche by 2011 and wants to eclipse Toyota, the world auto leader, by 2018.

Volkswagen predicted that the acquisition of Porsche would mean an annual increase in operating earnings of around 700 million euros ($NZ1.45 billion).

Porsche and VW were once part of a automobile enterprise launched by Ferdinand Porsche in the first half of the last century.

 


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