Volkswagen (VW) has announced that they have reached an agreement to acquire the remaining 50.1% of sports car maker Porsche, after a seven year battle between the two German automobile manufacturers. In 2005, Porsche began buying up VW in an attempt to protect both car makers from corporate takeover. By 2008, Porsche had already owned 42.6% and admitted to a complete takeover of VW as they try to buy up 75% of the company. The plan was put on hold because of legal problems and tax hurdles that ended up putting Porsche almost $12.5 billion in debt. The failed takeover has allowed VW to turn the tables, and the complete takeover of Porsche by VW is expected to be finalized by August 1st, 2012.
Under the current agreement, Volkswagen will take over Porsche’s sports-car operations, leaving Porsche SE a stand alone holding company. By completing the deal this year, instead of in 2014 the companies said they would save an extra $400 billion in costs through the integration. According to Volkswagen Chief Executive Martin Winterkorn, the agreement will allow both companies to move forward and become stronger, something they have not been able to achieve the last three years as the takeover left both car makers in limbo.
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