Volkswagen to take over Porsche soon
{{#rendered}} {{/rendered}}FILE - In this June 29, 2009 file picture a a logo of a car of German car maker Volkswagen VW is reflected in the varnish of a Porsche sports car in Dresden. Shares in Volkswagen AG soared higher on Thursday July 5, 2012 after Europe's biggest automaker announced a deal to complete the takeover of sports car manufacturer Porsche by the end of the month, which the company said will result in savings of some 700 million euro (US $ 880 million) per year. Volkswagen is to acquire the 50.1 percent in Porsche's capital that it doesn't already hold from holding company Porsche SE for 4.46 billion euro plus one Volkswagen share. The arrangement allows it to book the acquisition as an internal reorganization, which is advantageous in tax terms. (AP Photo/ Matthias Rietschel,File) (AP)
German carmaker Volkswagen says it is on track to finalize the full takeover of sports car manufacturer Porsche by the end of the month.
Volkswagen AG said in a statement late Wednesday Porsche AG will become another fully integrated brand of the Volkswagen group as of August 1.
The Wolfsburg-based group, Europe's biggest carmaker, includes brands such as Audi, Volkswagen, Seat, Bugatti, Bentley and truck makers MAN and Scania.
{{#rendered}} {{/rendered}}The deal is also set to restructure the companies' complicated ownership ties.
Volkswagen says the missing 50.1 percent in Porsche AG's capital will be bought from holding company Porsche SE for $5.61 billion plus one Volkswagen share. Porsche SE, in turn, currently holds a sizeable stake in Volkswagen and several executives and major shareholders are active in both firms.