EU internal markets commissioner Charlie McCreevy has told Handelsblatt he expects to complete the second stage of legal proceedings against the German government and its new VW law before Christmas.
Go deeper with GlobalData
According to Reuters, Berlin will have two months to respond before the EU can formally take the issue back to the European court.
Germany rewrote the VW law when the European court of justice ruled that original law, dating back to the 1959, contravened European union rules on the free flow of capital. But Germany retained a clause that means the state of Lower Saxony can effectively block a hostile takeover of VW through a 20% stake that it holds and this is being contested. Normally, under German company law, such a right of veto only applies to organisations with a 25% shareholding.
Porsche is the largest shareholder in Volkswagen with the equivalent of a 74.1% stake. It has said it wants to raise this to over 75% and is keen to see the VW law abolished so that it can exert full control over the company.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
