German Carmaker Volkswagen Set To Takeover Porsche

VOA Breaking News
July 5, 2012 at 12:20 am (UTC-4)

German automaker Volkswagen says it expects to complete a takeover of sports car manufacturer Porsche by the end of the month.

Volkswagen AG issued a statement Wednesday, saying Porsche AG will become a fully integrated brand of Volkswagen by August 1.

Volkswagen says it will purchase the remaining 50.1 percent of Porsche from its holding company for $5.6 billion plus one share of Volkswagen.

Porsche SE already had a considerable investment in Volkswagen before the current deal and executives and major shareholders are active in both companies.

The chairman of the board of management of Volkswagen Aktiengesellschaft, Martin Winterkorn, says combing their operating business will make Porsche and Volkswagen stronger financially, benefiting customers, employees and shareholders.

The Wofsburg-based automaker produces brands such as Volkswagen, Seat, Audi, Bentley and truck makers MAN and Scania.