Twitter You Tube Facebook Autobodynews Linked In

Thursday, 05 July 2012 17:04

VW to take full control of Porsche

Volkswagen Group's decision to take full control of Porsche Automobil Holding SE's automaking business is seen as positive by analysts and ends a long struggle for control between the two automakers.

VW said it has agreed to buy the remaining 50.1 percent of Porsche SE's automotive business that it doesn't already own for 4.46 billion euros ($5.6 billion), ending a seven-year takeover saga that divided two of Germany's most powerful families.

The agreement means Volkswagen can now fully fold the Porsche automaking business into its stable of brands, which includes  Audi and Bentley.

It leaves Porsche SE, which is controlled by the Piech-Porsche family still owning 50.7 percent of VW's common stock.

"To have the Porsche clan as owners and the anchor shareholder is good for Volkswagen and for Germany," said Christoph Stuermer, an IHS Automotive analyst in Frankfurt. "This has changed the cultural heart of the company. Volkswagen has become substantially stronger and long-term oriented."

Read 2396 times