Europe's biggest automaker Volkswagen wrapped up its take-over of German luxury sports car group Porsche two years earlier than planned Wednesday in a move they said would strengthen both firms. In a deal announced last month, the two companies - which had been seeking to merge since 2009 - agreed to move up the integration of their businesses to create economies of scale in an increasingly tough global market.
"The path is now finally clear for a bright future together," VW chief executive Martin Winterkorn said in a statement. "Even closer co-operation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the group's product portfolio with fascinating new vehicles."
Under the agreement, which they said would unlock 320 million euros ($400 million) in net synergies, VW paid Porsche's current holding company Porsche SE 4.5 billion euros plus one VW share for the 50.1 percent it did not already own in the sports car maker. VW initially acquired 49.9 percent in Porsche in 2009 in the first stage of a complex take-over agreement, the completion of which then ran into a number of legal and tax hurdles.
The new merger structure will also have the advantage of averting massive tax payments for VW. Prior to VW's take-over of Porsche, the sports car maker had itself tried, but failed, to swallow the much larger VW, running up more than 10 billion euros of debt in the process. VW's brands currently include Volkswagen, Audi, Skoda, SEAT, Bentley, Bugatti and Scania and MAN trucks.
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