Volkswagen, the German automobile manufacturer, may complete the takeover of the luxury auto maker Porsche SE this year. As per information given by the German media on Sunday, Volkswagen is just few steps away from acquiring Porsche. Volkswagen, the biggest automaker in Europe, also owns popular automobile companies, namely Beatty, SEAT, Audi, Bentley, Skoda, Scania and Lamborghini.
Der Spiegel, Europe’s leading news weekly, will publish this story in its upcoming issue, along with the Volkswagen’s current share. According to reports, Volkswagen currently owns 49.9% shares of Porsche and is looking forward to purchase remaining 50.1% in 2012 at a cost of USD 5 billion.
The news about Volkswagen acquiring Porsche came at a time when the latter has failed to overcome its rising debts. Currently, Volkswagen is completing the formalities and is planning to create a holding company to escape paying taxes. Volkswagen will have to pay more than USD 1.29 billion in taxes on completion of the deal before the year 2014. The creation of a holding company that will look after the buying and maintenance of stake in Porsche will be a logical step for the Europe's biggest auto maker to avoid having to pay taxes.
Spiegel stated that while signing the contract, Volkswagen agreed to grant independence to Porsche that would give it freedom to plan its investments as well as models. In the year 2008, Porsche tried to acquire Volkswagen but things have changed now and with surmounting debts, Volkswagen has to come to the rescue of the luxury car manufacturer. No additional information was provided by either company. A Volkswagen spokesperson stated, "But in principle, we aim to complete the transaction as quickly as possible."
