Fabian Bimmer/Reuters/File
Martin Winterkorn, CEO of German carmaker Volkswagen (R) and CEO of Porsche, Matthias Mueller (L) laugh before a news conference in Wolfsburg, July 5, 2012. Porsche SE, the holding company that still controls about half of the sports-car business that VW does not already own, will receive 4.46 billion euros ($5.58 billion) plus a single common VW share, in exchange for full control of Porsche, VW said in a statement late on Wednesday.

Volkswagen completes Porsche takeover

Volkswagen has completed its takeover of Porsche, acquiring the 50.1 percent of the luxury automaker that it didn't already own. Volkswagen will pay Porsche $5.6 billion plus one ordinary VW share, according to the agreement.

Porsche is now officially part of the Volkswagen Group, with the two companies announcing this week that Volkswagen will purchase the remaining 50.1-percent stake in the sports car manufacturer for 4.46 billion euros (approximately $5.6 billion) from its current holding company owner Porsche SE.
 This ends a seven-year-long takeover feud that saw Porsche previously attempt to take over Volkswagen and an ensuing embroilment of the ruling Porsche and Piech families.

 The latest move will allow the integrated automotive group consisting of Volkswagen and Porsche to become a reality two years earlier than the original Comprehensive Agreement signed in 2009, thanks to a separate agreement with German tax authorities.

 Under the new structure developed jointly by the two companies, Porsche SE will contribute its operations as a holding company, including its 50.1-percent Porsche stake, to Volkswagen, which already holds indirectly 49.9 percent of the sports car manufacturer.

 Once the transaction has closed, Volkswagen will hold 100 percent of the shares of Porsche via an intermediate holding company. In return, Porsche SE will receive the $5.6 billion consideration plus one ordinary share of Volkswagen. The cash consideration is based on the equity value of 3.88 billion euros ($4.85 billion) for the remaining shares of Porsche set out in the original Comprehensive Agreement, plus a number of adjustment items.

 Among other things, Porsche SE will be remunerated for dividend payments from its indirect stake in Porsche that it would have received as well as for half of the present value of the net synergies realizable as a result of the accelerated integration, which amount to a total of approximately 320 euros million ($400 million). If all goes to plan the move should be finalized by August 1.

 Speaking at the announcement this week, Volkswagen CEO Martin Winterkorn said, "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.”

You've read  of  free articles. Subscribe to continue.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to Volkswagen completes Porsche takeover
Read this article in
QR Code to Subscription page
Start your subscription today