Volkswagen to finally take over Porsche
The cat and mouse game between the Volkswagen and Porsche merger has finally ended with the former all set to buy out the remaining stakes from Porsche. VW will officially claim ownership of Porsche on August 1 this year. This is following the announcement by the two last September that it would not be possible to implement the merger as it will not be economically feasible until the latter part of 2014.
Under the structure developed jointly by the two companies, Porsche will contribute its operations as a holding company, including its 50.1 per cent Porsche stake, to Volkswagen Aktiengesellschaft, which already holds indirectly 49.9 per cent of Porsche AG.Once the transaction has closed, Volkswagen will hold 100 per cent of the shares of Porsche AG via an intermediate holding company. In return, Porsche will get 4.46 billion Euros and an ordinary share of VW. Apparently the merger will not benefit the German government coffers as it is being classified as a restructuring instead of an acquisition. Due to this, VW will be saving approximately 1.5 billion euros in taxes.
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