VW board agrees on final details to buy a 49.9 percent stake in Porsche AG by the end of this year. The company will complete a merger with Porsche AG parent company Porsche Automobil Holding SE by 2011.
VW's supervisory board has put its final stamp of approval on the company's merger with Porsche AG - a wholly owned subsidiary of Porsche Automobil Holding SE.
Volkswagen AG will purchase a 49.9 percent stake in Porsche AG by the end of this year. It will complete a merger with parent company Porsche Automobil Holding SE by 2011.
The Porsche and Piech families, which still control Porsche, are set to put their signatures to a merger contract today (Friday, November 20, 2009). The VW board is said to also be signing off on a series of contracts, thousands of pages long, detailing a multi-stage process for the merger. VW said in a press release it wants the process to go as smoothly as possible and will propose a resolution to issue new preferred shares at its Extraordinary General Meeting on December 3, 2009. The new shares will allow VW to maintain its "medium term financial flexibility," the company said.
From the press statement, "The creation of an integrated automotive group with ten strong brands follows a compelling industrial logic. It represents a unique opportunity for Volkswagen and is in the best interests of all shareholders. Volkswagen will further expand its position as the leading global multi-brand group with the inclusion of Porsche AG and the automobile trading business of Porsche Holding Salzburg."