VW and Porsche logos

If you weren't paying close attention, you probably missed the climax of the Volkswagen and Porsche union. After three years of trying to plan the perfect wedding – and by "perfect" we mean one in which VW didn't have to pay $1.9 billion in tax on the transaction – and two years in which Porsche inadvertently played Bridezilla, the consummation has resulted in matter-of-fact announcements and a jargon-filled press release from VW.

So now that Porsche belongs 100-percent to VW, what does it mean? For the moment, not much that outsiders will be able to see. The eagerness to tie the knot has been about unlocking the cost savings of the unified firm, said to be €700 million ($856M U.S.), and clearing out Porsche's debt burden of something like €2.5 billion ($3.1B U.S.). The two companies already work together on models like the Panamera and Macan, and have a platform-sharing future already mapped. Filing the final paperwork means they can continue their collaboration even more closely and without regulators peering over shoulders.

Comprehensive integration will, naturally, be ongoing, but from now on, it's "'Til death do us part" or whatever that is in German. Have a read of the presser below for some number-heavy details.
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Volkswagen and Porsche finalize creation of Integrated Automotive Group

Wolfsburg, August 1, 2012 – The creation of the Integrated Automotive Group between Volkswagen and Porsche was finalized on August 1 as planned. "The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group's product portfolio with fascinating new vehicles", said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft's Board of Management, in Wolfsburg on Wednesday.

Under the structure developed jointly by Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE (Porsche SE), Porsche SE contributed its indirect 50.1 percent holding in Porsche AG to Volkswagen Aktiengesellschaft effective August 1, 2012. Volkswagen thus holds 100 percent of the shares of Porsche AG via an intermediate holding company. The cash and share consideration of about €4.49 billion is based on the equity value of €3.88 billion for the remaining shares of Porsche AG set out in the Comprehensive Agreement entered into in 2009, plus a number of adjustment items. Among other things, Porsche SE will be remunerated for dividend payments from its indirect stake in Porsche AG that it would have received, as well as for half of the present value of the net synergies realizable as a result of the accelerated integration, which amount to a total of approximately €320 million.

The accelerated integration of Porsche AG into the Volkswagen Group allows the implementation of Volkswagen AG's and Porsche AG's joint strategy more quickly. "The unique Porsche brand will continue to develop successfully under Volkswagen's multibrand strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands", said Winterkorn.