GERMANY: Porsche to take majority VW stake
Porsche Automobil Holding SE's board has approved an increase in its stake in Volkswagen AG to more than 50% from about 30% now.
As soon as regulatory approvals have been obtained, Porsche SE can acquire the majority of the shares in Volkswagen, the company said in a statement.
CEO Wendelin Wiedeking said: "Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition."
As soon as a majority stake has been acquired, Volkswagen AG will - along with the sportscar-making company Porsche AG - constitute a further sub-group of Porsche Automobil Holding SE and VW group employee representatives will become members of the supervisory board.
Representatives of the European employees of Volkswagen will become members of the SE works council. As a result of the difference in the numbers of persons employed by both sub-groups, the SE Works Council will then be dominated by employee representatives of Volkswagen AG, the statement said.
"Our aspiration to become the majority shareholder of Volkswagen is good news for the employees of the Volkswagen Group and of Porsche. The decision of the supervisory board secures the long-term future of both companies," said Wiedeking.
It is not planned to merge the two companies.
Based on the current stock exchange price of approximately EUR150 per ordinary share, the acquisition of a further 20% in VW corresponds to an investment of almost EUR10bn.
Volkswagen expects to intensify its cooperation with Porsche as a result, VW CEO Martin Winterkorn told Automotive News Europe (ANE) at Geneva on Tuesday.
The acquisition of a majority stake" shows the trust Porsche has in Volkswagen," he said. " It will lead to more cooperation between the two companies."