Volkswagen Group is buying the 50.1 pc of Porsche it doesn't already own, paving the way for the full integration of the sports car maker into Europe's largest automotive company.
Volkswagen will pay 4.46 billion euros and one VW share to Porsche SE, the holding company owned by the Porsche and Piech families. Porsche SE also controls VW, making the transaction essentially an internal one within the Porsche and Piech-owned constellation of car companies.
The full integration of Porsche into the VW Group is "good for Volkswagen, good for Porsche and good for Germany as an industrial location," VW Group CEO Martin Winterkorn said in a press release.
The move means Porsche will now officially become the 11th brand in the Volkswagen Group.
VW expects net synergies of 320 million euros to result from the integration, which will officially take effect August 1. That's earlier than expected, VW said.
VW Group CFO Hans Dieter Poetsch said the inclusion of Porsche as a full member of the company will make day-to-day cooperation easier and will yield a wide range of other benefits.
"The accelerated integratioan will allow us to start implementing a joint strategy for Porsche's automotive business more quickly, to realize key joint projects more rapidly and hence to leverage additional growth opportunities in attractive market segments," Poetsch said.