Filed under: Euro, Government/Legal, Porsche, Volkswagen, Earnings/Financials
EU grants Porsche permission to purchase VW
Porsche is one step closer to its goal of purchasing Volkswagen. Back in April of last year, the German automaker passed the 30-percent mark, forcing it to make an outright offer for The Volkswagen Group in its entirety, which it did. Not too many VW shareholders sold their stake to Porsche, as the bid was for the bare minimum amount allowed by law. Still, the legal requirement had been met, allowing Porsche to continue gobbling up the automaker according to its own timetable. Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.
This story is likely far from over, as the German State of Lower Saxony still claims a 20-percent stake in Volkswagen, which gives it certain rights to block decisions made by VW's new parents. Still, it seems that its only a matter of time before VW and Porsche are united under a different Ferdinand... Piech that is, grandson to Mr. Porsche himself.
[Source: Reuters]
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Reader Comments (Page 1 of 1)
MGBYG 10:34AM (7/24/2008)
Well, since Porsche spent some time in prison because he helped to create the VW, it sounds like a cosmic re-alignment, karma-wise.
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Alex 10:58AM (7/24/2008)
So will this do much for VAG? It seems like there isn't a lot that seperates the companies as it is. Will this just some some more platform sharing and swaping of engine technology, or something more?
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garlinski 10:59AM (7/24/2008)
May I get a Porsche engine for my Jetta? Just kidding.
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Avinash machado 11:22AM (7/24/2008)
So the Porsche-VW combine will be like GM having a huge line up of brands from Skoda to Bugatti.
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Adam 11:27AM (7/24/2008)
I wonder what this will mean for Porsche's predicament with emissions in some markets.
In any case, there's already far too much "dilution" of Porsche in the last ten years of cars (since the 993) so I hope this doesn't loosen their grip on the 911. Looking at VW and Audi and Bugatti swapping steering wheels and switchgear around is just ugly. Jumping into a Gallardo to be greeted by an Audi cabin is just not okay. If I ever see Porsche put more Audi or VW into the 911, I think we'll be seeing the end of the world as we know it.
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Cristian 11:48AM (7/24/2008)
hmm... Piëch? not really!
If you dig for more info, you will find that the Piëch and Porsche families are in a fight for the upper hand of their joint holding.
Both of them are rightful heirs to the Porsche legacy, and the Piëch family may have contributed a bit more to the success of Porsche. However, the Porsches have laid their hands on some shares that belonged to the Piëchs.
At this time, it seems that the Porsches are going to profit more. sad... I'm siding with the Piëchs.
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wushu 2:05PM (7/24/2008)
The evil Porsche AG empire should be forced by law to divest its Audi shares. Not only does Porsche AG refuse to build a Cayman with 400+ HP, Porsche AG also refuse to let Audi build a 6-cylinder 400+HP version of the Audi R8, for fear of competition. This is bad for the consumer. Porsche AG is such an arrogant evil company, we should all push for an Internet Boycott of all things Porsche.
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Jackattak 2:36PM (7/24/2008)
Riiiiiight. And just because you say so, no less.
Get real, buddy.
Richie 5:45PM (7/24/2008)
...because Porsche sells lots on the Internet. Right.
Jackattak 2:36PM (7/24/2008)
I hope like hell that Porsche takes over control of VW and brings back the brand to it's once revered image: The People's Car.
No more $35,000, V8-powered luxo-sedans from VW, please.
Bring over the Polo like they should have ten years ago, please.
Bring back the People's Car, Porsche! you have the power to make VW great again.
That is all, Jackattak
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Markus 4:22PM (7/24/2008)
A little off-topic, but ironically, these $35,000 equal about €22,000 which, incl. VAT, would just about buy you a new Polo 1.6 gasoline or 1.9TDI here in Germany - albeit admittedly decently loaded with extras (still no fancy stuff like gps or leather, though). So we could probably live with VW offering us $35,000 V8 sedans :).
Lou 2:56PM (7/24/2008)
I had always worried Porsche might be bought up if they hit financial difficulty. Who knows what would happen to the product. This is good news for Porsche...they might be able to transfer some VW carbon-credits to keep building 911s if that is the way emissions regulations go.
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