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.
This all started back in 2005 when Porsche attempted to takeover Volkswagen which, after it failed, spurred millions of dollars in lawsuits both in the US and in Europe. Those massive lawsuits played a major part in the slow going process that many expected would end in a merger of sorts between Porsche holding and VW Auto Group. However, in an effort to avoid any liability from the takeover-related lawsuits, VW has purchased the Porsche automotive brand rather than merging with the entire Porsche corporation. VW purchased the original 49.9% in December of 2009.