Volkswagen completes Porsche stake purchase
Volkswagen has finally confirmed the deal to take a 49.9 percent stake in Porsche for €3.9 billion. For the Stuttgart based sportscar maker, this outcome is opposite of what it had in mind – to take majority control of mighty Volkswagen. The aggresive stock buying spree engineered by ex Porsche CEO Wendelin Wiedeking was funded by dubious dabbling in the money market, but even the man who saved Porsche from bankruptcy could not predict the global financial crisis.
VW calls this coming together an “integrated automotive group” but with “Porsche under the leadership of Volkswagen”. What’s in it for VW? Porsche ideally complements its bulging brand portfolio, allows the VW Group to expand its position in the premium business, create cost synergy and boost earnings – Porsche is the world’s most profitable carmaker and the annual operating profit of the Volkswagen Group is expected to increase by some €700 million in the long term with the new brand on board.
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