VW and Porsche have merged as the German autogiant increases its global volumes.
Already holding a stake in the luxury sportscar manufacturer, VW has now created what it describes as an "integrated automotive group" by completing its merger with Porsche. With a heads of agreement signed back in 2009, at the end of last year the full merger was declared as unlikely to happen before 2014.
Porsche's new 918 Spyder Image: Porsche |
However, the process moved faster than either company had anticipated, meaning that Porsche's business will now contribute in full to the VW Group by August 1, 2012. The deal involved some €4.4bn in cash, plus a single VW ordinary share to be paid to the iconic marque.
In return, the merger is likely to net an anticipated €320m in synergies which will be split equally between the two organisations, with VW Chairman and CEO, Prof. Dr Martin WinterKorn describing the arrangement as: "Good for Volkswagen, good for Porsche and good for Germany as an industrial location".
In a somewhat complicated arrangement, VW will take a 50.7% stake in Porsche SE (which will contribue its operations as a holding company whilst taking a 100% interest in the holding company that has ownership of Porsche AG.
Regardless of the structure, VW will be confident that it can add yet another brand to its burgeoning luxury portfolio, which currently includes Bentley, Lambourghini and Bugatti.
The news also comes as VW announced an 8.4% increase in customer handovers as it delivered 3.65m vehicles around the world between January and May this year. Despite the economic gloom, deliveries of passenger cars were particularly strong in Central and Eastern Europe, which saw a 50% uplift, while North America showed a 24% increase.
China and the Asia-Pacific region continued to prove a strong market for the Group, where Audi alone delivered 189,000 - up nearly 37% - and Skoda added 121,000, a 13% improvement.