Volkswagen buys remaining 50.1 percent stake in Porsche
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Volkswagen Group, the largest carmaker in the European market, is all set to buy the remaining stake in Porsche, which will make the former a fully owned subsidiary of Volkswagen in the Indian auto market.
It is to be mentioned here that Volkswagen has previously owned 49.9 percent stake in Porsche, and the latest acquisition is of remaining 50.1 percent shares. In return, Porsche will be getting consideration equal to Rs 30,000 crore along with an ordinary share of Volkswagen. The merger will comer into effect from August 1, 2012.
While speaking on the merger, CFO Hans Dieter Pötsch said, “The accelerated integration will allow us to start implementing a joint strategy for Porsche’s automotive business more quickly, to realize key joint projects more rapidly and hence to leverage additional growth opportunities in attractive market segments. It will also enable Volkswagen AG and Porsche AG to concentrate fully on their operating business by making day-to-day cooperation much simpler.”
Volkswagen AG is currently one of top car makers in the world with having as many as 10 different brands under its banner including the likes of Skoda, Audi, Bentley, Bugatti, Ducati and Lamborghini.
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