by Christopher Freeburn | July 5, 2012 9:37 am
Volkswagen (PINK:VLKAY) announced yesterday that it has concluded an agreement to acquire the outstanding ownership of Porsche (PINK:POAHF). The $5.9 billion deal caps a long-running struggle between Germany’s Porsche and Piech automotive dynasties, Reuters noted.
In 2009, the companies agreed to merge after Porsche attempted to purchase VW. However, VW walked away from that merger last year, attributing its decision to ongoing shareholder litigation.
In addition to cash, VW will offer a single common share to Porsche’s holding company, which could allow the deal to qualify as a restructuring under German law, avoiding a 1.5 billion euro tax bill.
Analysts told Reuters that the acquisition provided VW with a premium automotive brand at a good price. The purchase could increase VW’s profits by as much as 6% in the coming fiscal year, boosting its revenues by 9 billion euros.
Porsche models will be produced at VW manufacturing plants.
Source URL: http://investorplace.com/2012/07/vw-to-purchase-remainder-of-porsche-for-5-9b/
Short URL: http://invstplc.com/1nukixa
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.