Volkswagen completes Porsche takeover

As reported early last month Volkswagen’s takeover of Porsche was due to take effect from 1 August. There’s been no last minute hiccups and Volkswagen has released a short statement to confirm all has gone to plan.

Volkswagen has shown it is able to offer freedom to the other manufacturers under the Volkswagen Group umbrella and these words from Prof Dr Martin Winterkorn, Volkswagen AG Chairman, will give Porsche fans some heart: “The unique Porsche brand will continue to develop successfully under Volkswagen’s multibrand strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands.”

Volkswagen and Porsche finalize creation of Integrated Automotive Group

Wolfsburg, 01 August 2012 – The creation of the Integrated Automotive Group between Volkswagen and Porsche was finalized on August 1 as planned. “The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group’s product portfolio with fascinating new vehicles”, said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft’s Board of Management, in Wolfsburg on Wednesday.

Under the structure developed jointly by Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE (Porsche SE), Porsche SE contributed its indirect 50.1 percent holding in Porsche AG to Volkswagen Aktiengesellschaft effective August 1, 2012. Volkswagen thus holds 100 percent of the shares of Porsche AG via an intermediate holding company. The cash and share consideration of about €4.49 billion is based on the equity value of €3.88　billion for the remaining shares of Porsche　AG set out in the Comprehensive Agreement entered into in 2009, plus a number of adjustment items. Among other things, Porsche SE will be remunerated for dividend payments from its indirect stake in Porsche AG that it would have received, as well as for half of the present value of the net synergies realizable as a result of the accelerated integration, which amount to a total of approximately €320　million.

The accelerated integration of Porsche AG into the Volkswagen Group allows the implementation of Volkswagen AG’s and Porsche AG’s joint strategy more quickly. “The unique Porsche brand will continue to develop successfully under Volkswagen’s multibrand strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands”, said Winterkorn.