Volkswagen to buy a 49.9% stake in Porsche
October 22nd, 2009 - 1:22 am ICT by Aishwarya Bhatt ( Leave a comment )
Wolfsburg, Oct 21 (THAINDIAN NEWS) In a major deal between automobiles companies, Europe’s largest carmaker, Volkswagen, has said that it is going to buy 49.9% of sports car maker Porsche by the end of 2009 for about 3.9bn Euros (£3.54bn or $5.8bn).
In August, the details between VW and Porsche were worked out and VW said that it will merge with its German compatriot by 2011. Earlier reports had suggested that, VW had planned to buy a 42% stake in Porsche by the end of this year for 3.3bn Euros. But now it is looking at a larger stake by 2011.
Earlier, Porsche tried its best to take over and buy VW, but it failed badly due to the cash crunch, which was due to both the global credit crunch and the slump in global car sales. This major failure on Porsche’s side even led to the resignations of former chief executive Wendelin Wiedeking and financial director Holger Haerter, this year in the summer.
Ferdinand Piech, supervisory board president for VW stated that he expects to see 12 brands within the VW group, and the company is interested in a tie-up with the Japanese carmaker Suzuki also in the future.
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