VW takes 49.9 per cent of Porsche; two firms to merge by 2011

Volkswagen AG has formally taken a 49.9 per cent stake in Porsche AG.

The acquisition is the latest step towards the two companies merging by 2011. Porsche’s highly publicised takeover of VW collapsed earlier this year and has it been forced into a merger with VW in order to service is multi-billion-euro debt.

VW said: “The combination of the two companies follows a compelling strategic, industrial and financial logic. For the Volkswagen Group, Porsche ideally complements the brand portfolio.

“The Stuttgart-based car maker will allow Volkswagen to further expand its position in the premium business, which offers particularly strong earnings. In turn, as an independent brand under the roof of the Volkswagen Group, Porsche will have the potential for significant additional growth.”

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