Volkswagen’s billion purchase of Porsche will be finalized two years ahead of schedule on 1 August. The early completion date will deliver net savings of €320 million which will be split evenly between both companies.
Volkswagen will pay €4.46 billion, plus one Volkswagen share to acquire the 50.1 per-cent of Porsche it does not currently own.
The two companies initially signed an agreement in 2009 but later announced German tax laws were complicating transition and the original completion date of December 2011 was shifted to the second half of 2014. However changes in the German legal system have facilitated the completion now on 1 August 2012.
“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,” revealed Volkswagen chief Martin Winterkorn.
Critics argue the deal is better for Volkswagen as Porsche has for many years been the world’s most profitable automotive company.
And we suspect Volkswagen employees the world over are studying the chapters in their employment contracts headed “Company Car Entitlements”.
