• Aug 14, 2009
Qatar PM Hamad bin Jassim Al Thani and Dr. Wolfgang Porsche

The era of the Porsche and Piech families controlling the German sports car maker looks like it will soon be drawing to a close of sorts. Following quickly after yesterday's approval by the Volkswagen supervisory board of a merger agreement with Porsche, Qatar moved in to take a stake today. The Persian Gulf emirate has bought 10 percent of the Porsche SE holding company as well as the options that Porsche held on 20 percent of VW shares, though no purchase price has been announced.

When Porsche started making its big move for control of VW last year, it ended up with way more options than it could afford. It's still not entirely clear who will own what when the whole deal is done in 2011, but it appears that Qatar may end up as one of the biggest shareholders of the combined company. What stake will be owned by the Porsche and Piech families is unknown. Even as the families cede control of Porsche, Ferdinand Piech remains firmly in charge back in Wolfsburg.

[Source: Porsche]

PRESS RELEASE

Qatar now a shareholder in Porsche

Stuttgart. This Friday, in a festive ceremony, Porsche Automobil Holding SE, Stuttgart, and Qatar Holding LLC (QH) signed an agreement signaling the entry of the Emirate of Qatar into the Porsche SE family. In the afternoon, the Chairman of the Supervisory Board of Porsche SE, Dr. Wolfgang Porsche, welcomed the high-ranking delegation from Qatar led by Prime Minister of the Emirate, Sheik Hamad ibn Jassim ibn Jabir Al-Thani, to the historical Porsche Villa located on Killesberg Hill outside of Stuttgart. There, in the presence of the Minister President of Baden-Württemberg, Günther Oettinger, the two men signed two contractual agreements.

The Prime Minister of the Emirate of Qatar signed the purchase agreement with which Qatar will acquire ten percent of the ordinary shares of Porsche SE. As spokespersons for the family shareholders, Dr. Wolfgang Porsche and Hans Michel Piëch also signed the agreement. The second agreement, which provides for the takeover by the Emirate of a major share in the cash settled options relating to Volkswagen shares, was signed by Ahmad Al Sayed, CEO of Qatar Holding, and Chairman of the Executive Board of Porsche AG, Michael Macht, as well as his Deputy Chairman, Thomas Edig, who are both members of the Executive Board of Porsche SE.

Dr. Wolfgang Porsche gave the Emirate of Qatar a warm welcome as a new member of the Porsche shareholder family and declared: "Today is a historic day for us. For the first time in Porsche's history, an external investor has acquired a holding of ordinary shares that so far have been solely owned by the family members of Porsche and Piëch." The Porsche and Piëch families, continued Supervisory Board Chairman, have expressly welcomed the decision of the Emirate to become a shareholder in the company and, at the same time, to take on a major holding in the options to VW ordinary shares held by Porsche. "This will not only improve Porsche's liquidity situation, but it is also an important step on the predestined road to an integrated automobile company, which we intend to forge together with Volkswagen," explained Dr. Porsche.

Sheik Hamad ibn Jassim ibn Jabir Al-Thani emphasized that Qatar considers itself a strategic investor who has great interest in the long-term positive development of Porsche. "Porsche ranks among the most valuable automobile brands in the world. We are proud to be a part of this sports car manufacturer and its rich tradition and history. Through our trust-based collaboration with the family shareholders, we will help ensure that the success story of Porsche, and, in the future, of Volkswagen continues to be written," explained the Prime Minister.


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  • 26 Comments
      • 5 Years Ago
      Be careful who you in North America decide to piss off. The Bush's didn't allow the Bin Laden's to fly out of the U.S after 911 because they loved them. They let them leave because the Bin Laden's own the Bush's and quite a bit of the US If the Saudi's pulled out of the U.S economy, so would the Chinese and the rest of the world. Thus leaving Americans doing a very realistic remake of Road Warrior.
      • 5 Years Ago
      The Middle Eastern countries are a strong market for Porsche and Bugatti. Maybe the guys from Qatar are merely looking for an employee and "friends and family" discount for themselves? 30% off on a Carrera GT isn't chump change, ya know.

      Prediction: If the Qatar stake actually, truly goes through, in a very few years the Qataris (is that the correct name for them as a group?) will discover how truly pig headed the Germans are about listening to anyone about anything other than another German and will give up trying to influence anything within the VW Group. In the end Qatar will wind up selling their share of VW-Porsche to some German company.
        • 5 Years Ago
        I'm with rockyroad in not being worried.

        This sort of foreign private investment has traditionally been unproductive for the investors. They tend towards grossly overpaying for assets and lack of transparency allowing managers to absorb any funds that would normally provide the Qataris a return on investment.

        The Japanese were going to buy up the world too.
      • 5 Years Ago
      NOT a good thing for many reasons!!
        • 5 Years Ago
        @macdog

        ?? WTF, again WHY is this "not a good thing in many ways"??
        You're the kind of guy who would say "f-ing anti-american Arab" and then turn around and say "oh I'm not racist, it was just a joke, come one I was taken out of context".
      • 5 Years Ago
      For some reason, I don't like this news one bit.
        • 5 Years Ago
        i'm not racist but i'm not very good with arabs, they have too much money that is not from their hard work so they don't have potential for it and still they are proud of them selves because they are rich, just look at their prime minister in picture, i'm iranian so i know arabs better(iranians are persian not arab) they even bought the name of persian gulf and world get used to their wrong name(they call it arabian gulf or just the gulf) im happy that sam used the correct name for persian gulf. but still its a free world and everybody could buy everybody so i hope Porsche do a good work with their money.
        • 5 Years Ago
        I agree. I don't like this news either. But on the other hand if these guys are a bit like investors and businessmen (I don't know much about Qatar) it can be good news. Dubai investors are well known for their passion to achieve the best in the world in every aspect.

        Just think something like "The World" happens in the automotive industry.
        • 5 Years Ago
        I meant like investors and businessmen from Dubai...sory
        • 5 Years Ago
        yeah, maybe because you are a racist. just a thought.
        • 5 Years Ago
        Well I suggest you read up on Qatar. It's a country that's developing at a great pace, trying to bring peace to the region, a country that has donated millions to the US when they needed aid, great relationship with the West, trying to bring freedom of speech, tolerance, and education to the region.

        People just go and lump all Arabs into one boat.

        oh and Arash, I'm half Qatari, half British, I worked for every penny I earned. I work overtime with other Qataris and unlike you, I believe that there are a lot of good people around the world.

        All I can say is, I for one will continue to try and be a good person in the world and won't steep to some people's levels.

        If someone wants info on Qatar, go check out http://www.iloveqatar.net
        • 5 Years Ago
        I'm equally racist. I hate everyone equally lol.....
      • 5 Years Ago
      Poor Dr. Porsche, he looks so naive among the sharks. Mr. Wiedeking did destroy the company as it was.
      • 5 Years Ago
      This is terrible, terrible news. The world needs to keep those people in their place. Just keep them pumping the oil until the western world converts to other energy sources. Then they can go back back to living in tents and pounding sand.
        • 5 Years Ago
        @gold teefus

        Why, why is this so "terrible news". In your opinion, Arabs shouldn't be able to make foreign investments?? Or what is your argument?
      • 5 Years Ago
      The bigot is usually the first one who brings up race in the discussion.
      Just another thought.
      • 5 Years Ago
      Volkswagen MUST remain pure......Im nervous with this news
      • 5 Years Ago
      It's funny that this post is about a German company and many, if not most, of the comments are wildly racist and hateful.

      Those who don't know history are bound to repeat it. You should be ashamed of yourselves.

      • 5 Years Ago
      All your base are belong to us!
      • 5 Years Ago
      The arabs know their oil will run out. If they don't own something else we desperately need, they will go back to pounding sand in the desert. For them, that is not an option. Once their oil runs out, they will be making half of our electric cars, providing us our banking, and if we let them, they will buy our water and air too and sell it back to us for $140/barrel.

        • 5 Years Ago
        Rjohnson, you miss the whole point. The oil money goes to fund jihad. It also goes to undemocratic governments who execute people just for being gay, or for committing adultery. That's the point of ruing the fact that the arabs are buying up the West. We are not talking just of Qatar, but of Saudi Arabia. The west owns the stuff the world needs because the West invented, and/or produce the stuff. The arabs didn't invent or produce the oil. The west found it, drilled it, shipped it, refined it, and in the end, we also pay for it. And the money we pay for it keeps us complicit in the terrorism aimed against us.

        • 5 Years Ago
        Where did you see him say he was mad? He was just stating facts. Other things the middle eastern money is buying up: real estate, electric utilities and yes, farms.
        R_johnson246
        • 5 Years Ago
        How selfish.

        Does everything have to be set up in America or Europe's favor? No. Not only is your comment simply unreal but its ignorant. First off, America and Europe owns more than half of the things that the world "desperately need", such as the majority of our food distribution channels, farms, MANY clothing companies (Levis, Nike, Old Navy come to mind), our Cell phone companies, cell phones themselves, most of the worlds computer companies, and more than 3/4ths the worlds auto companies, and you are upset over a little country like Qatar branching out beyond their borders to purchase a combined 30% stake in Porsche/VW?? Seriously??

        And I understand your Oil arguement but come on, thats their only excess resource that, like you said, WILL run out. Its simple economics (that America and Europe set up btw). Oil is hard to get. When being sold, it is therefore sold as a premium. Same goes with Diamonds and Bugattis. If over a million Bugattis were sold in a year, economies of scale would bring the costs down to produce it (and it would be up to the manufacturer to further bring the msrp down). So your mad at the Arab countries for following your rules? And branching out from regional economy and purchasing stressed companies (and yes, Porsche is classified as stressed.) All they are doing is practicing Globalization.
        • 5 Years Ago
        Kei, don't be stupid. Read up on Qatar. http://www.amnestyusa.org/annualreport.php?id=ar&yr=2006&c=QAT

        Women can't vote or drive cars. Why should we purchase their products? We banned products from South Africa just for segregation. And my comment was about the middle east oil countries in general, like Saudi Arabia, not just Qatar. They are investing our oil money into our countries so that they will have us by the short and curlies when the oil runs out.
        • 5 Years Ago
        believe it or not, Arabs aren't all the same. It's like saying 'Europeans' without acknowledging that different countries are just that. DIFFERENT.
      • 5 Years Ago

      Well, that's just great.

      The crazyeeeee, bickering Krauts really screwed themselves this time. Instead of greatly reducing the power of even goofier Pieche, they kept him around to once again screw VW with his 'up-market' ideas, and let in even goofier Qatar.

      DOH!!!!!
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