Volkswagen AG on Monday announced it had taken a 49.9% stake in Porsche AG, saying a further milestone had been reached on the way towards an integrated automotive group with the luxury sportscar and SUV specialist.
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The stake price was EUR3.9bn based on the enterprise value for Porsche AG calculated after due diligence and valuation, VW said.
“Following the comprehensive agreement concluded in August, the implementation agreements signed in November and the Volkswagen extraordinary general meeting held last week, the stake in Porsche AG represents the next milestone on the way towards the integrated automotive group with Porsche under the leadership of Volkswagen,” the automaker said in a statement.
“The acquisition of the trading business of Porsche Holding Salzburg is planned for 2011. The creation of the integrated automotive group is then to conclude with the merger of Volkswagen AG and Porsche SE during the course of the same year.”
VW said combining the two companies “follows a compelling strategic, industrial and financial logic. For the Volkswagen Group, Porsche ideally complements the brand portfolio. The Stuttgart-based car maker will allow VW to further expand its position in the premium business, which offers particularly strong earnings. In turn, as an independent brand under the roof of the VW Group, Porsche will have the potential for significant additional growth.”
The deal would also have “a sustained positive effect on the earnings situation” at VW Group.
“With a return on sales of 10.3 percent, Porsche AG is the world’s most profitable automobile manufacturer. VW will in future participate in this business success through its stake. In addition, the planned integration of Porsche in the [group] and the associated closer cooperation will realize significant synergies on both the income and the cost side,” the automaker added.
“As a result, the annual operating profit of the VW Group is expected to increase by some EUR700m in the long term.”
