Volkswagen Auto Group buys remaining stake in Porsche
Volkswagen announced their intentions to purchase the 50.1% of Porsche SE that they had previously not held after first reaching an agreement with German government tax officials that alleviated VW from a massive federal tax related to the buyout. The final 50.1% of Porsche reportedly will cost Volkswagen Auto Group $5.54 billion US Dollars (4.46 billion Euros) with roughly $4.82 billion US of that being attributed to the current equity value of the Porsche brand (3.88 billion Euros) combined with an additional 720 million US Dollars that is added in to cover various other costs outlined in the agreement. With Volkswagen Auto Group purchasing the rest of the Porsche automotive from the Porsche holding company – Volkswagen is able to avoid the legal battles facing the Porsche management. VW sources expect that Porsche brand will be fully absorbed into VW by August 1st.