After plenty of wrangling it looks as though the Porsche-Volkswagen takeover will end up being a friendly merger. At least, that’s how it is being played out in media reports across the globe.
The merger, announced today, will put an end to Porsche’s takeover bid and it is hoped the combined approach of the two companies will help circumvent the Lower Saxony “VW law” that could see any takeover plans quashed, despite Porsche being the majority shareholder in Volkswagen.
Both Porsche and Volkswagen have released brief press statements (available after the jump) and we’ve been told to expect more detailed news in the next month as to just how this merger will take shape.
In the meantime, check out this report from the BBC for a more in depth analysis.
Creation of an integrated car manufacturing group intended
Stuttgart. The members of the management boards of both Volkswagen AG and Porsche Automobil Holding SE have been in intensive talks about the deepening of the cooperation over the past weeks. The family shareholders of Porsche Automobil Holding SE, Stuttgart, have discussed the proposals resulting therefrom, with the inclusion of capital measures, this Wednesday and argued for the creation of an integrated car manufacturing group. In the final structure 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured.
On this basis both companies Volkswagen and Porsche intensify the talks in a joint working group with the relevant involvement of the State of Lower Saxony as largest co-shareholder as well as the employee representatives of both companies. It is the aim to develop a corresponding basis for decision-making on the future structure of the common group within the next four weeks.
Sights Set on Integrated Automotive Group
Wolfsburg, May 6, 2009 â€“ Volkswagen Aktiengesellschaft welcomes the decision by representatives of the Porsche und PiÃ«ch family shareholders to create an integrated automotive group in which each of the ten brands will retain its independence.
During the next four weeks, a joint working group whose members will come from Volkswagen and Porsche will consult intensively with the State of Lower Saxony and the workforce at both companies to prepare the basis for a decision on the future structure. The Board of Management of Volkswagen Aktiengesellschaft will do everything in its power to support this process.