Europe's biggest automaker Volkswagen will likely this year complete its takeover of luxury car group Porsche after clearing key hurdles, according to a German media report Sunday. News weekly Der Spiegel writes in its upcoming issue that VW, which owns 49.9 percent of Porsche, may buy the 50.1-percent stake in the manufacturer of the iconic 911 car for 3.9 billion euros ($5.0 billion) in 2012.
The report cited unnamed VW executives. Porsche has built up massive debts as it looked to seal a tie-up with VW and Spiegel said two previous obstacles now look surmountable. Volkswagen will avoid having to pay more than 1.0 billion euros in taxes for completing the deal before 2014 by creating a holding company to buy and maintain the stake in Porsche, according to the report. VW would also meet Porsche's demands for independence by signing a contract giving the sports car maker control over its investments and models, Spiegel said.
Porsche spectacularly tried to take over VW in 2008 but the attempt failed and the luxury car maker was in turn saved by Volkswagen.