Volkswagen Completes Purchase of Porsche for €4.46 Billion

VW Group before the merger

© photo courtesy of: Volkswagen

VolkswagenVolkswagenGermany, 1938 > present98 models
9654 photos
31 videos
Group has completed its purchase of PorschePorscheGermany, 1931 > present43 models
4639 photos
29 videos
for €4.46 billion. The two companies will officially be integrated on August 1, 2012. Porsche will not actually be under the umbrella of the rest of the VW Group brands. Instead, Volkswagen will own a holding company that owns Porsche. This gives Porsche an independence from VW that Audi and Lamborghini do not have. VW Group and Porsche first signed the integration agreement in August 2009. 

"The unique Porsche brand will now become an integral part of the Volkswagen Group. That is good for Volkswagen, good for Porsche and good for Germany as an industrial location. Combining their operating business will make Volkswagen and Porsche even stronger – both financially and strategically – going forward. We can now cooperate even more closely and jointly leverage new growth opportunities in the high-margin premium segment through targeted investments in pioneering products and technologies," said Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG.

VW Group after the merger

© photo courtesy of: Volkswagen

Previously, it has appeared that Porsche and VW would not be able to merge until 2014 because of Porsche's tax liabilities. However, rulings from the German tax authorities have made the merger economically feasible now. 

Porsche SE will sell its 50.1% stake in Porsche AG to Volkswagen, which already owns 49.9% of the company.