At an incredible meeting yesterday, Volkswagen AG’s Supervisory Board approved an agreement to create an integrated automotive group with Porsche.
The group will be led by Volkswagen with corresponding agreements negotiated by Volkswagen AG and Porsche Automobil Holding SE as well as the Porsche and Piech family shareholders and the employee representatives of the companies.
In addition, Porsche Automobil Holding SE’s Supervisory Board has approved the concept for the combination of the two companies with the agreement sealing a joint group with 10 strong brands, the plans for which will culminate with Porsche SE and Volkswagen merging.
The agreement will see Volkswagen initially take a 42 per cent stake in Porsche AG by the end of the year with the family shareholders selling the automobile trading business of the company to Volkswagen. Porsche will remain an independent company. Meanwhile, negotiations will continue with the Emirate of Qatar to acquire options on Volkswagen shares.
Professor Dr Martin Winterkorn, the chairman of Volkswagen AG’s board of management, said that the events marked a “decisive step towards a joint future” and commented that “more than ever before we now have what it takes to become the automotive industry’s number one”.
The merger is expected to be completed during 2011 and will require the approval of both companies’ shareholders.
