It’s been a long battle. It all started with Porsche aiming to take over much bigger Volkswagen. At one point tables turned and finally government authorities have approved the move which allowed Volkswagen to create the Integrated Automotive Group.
“The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group’s product portfolio with fascinating new vehicles”, said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft’s Board of Management, in Wolfsburg on Wednesday.
“The unique Porsche brand will continue to develop successfully under Volkswagen’s multibrand strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands”, said Winterkorn.
Obviously it does not mean much to anyone who is not closely involved with the two. Volkswagen and Porsche are already sharing platforms and will continue to do so. Same thing with engines. So far it has been one sided – Porsche is using VW Group engines and platforms, but that will likely change soon…
PRESS RELEASE (click to expand)
Volkswagen and Porsche finalize creation of Integrated Automotive Group
Wolfsburg, 01 August 2012 – The creation of the Integrated Automotive Group between Volkswagen and Porsche was finalized on August 1 as planned. “The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group’s product portfolio with fascinating new vehicles”, said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft’s Board of Management, in Wolfsburg on Wednesday.
Under the structure developed jointly by Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE (Porsche SE), Porsche SE contributed its indirect 50.1 percent holding in Porsche AG to Volkswagen Aktiengesellschaft effective August 1, 2012. Volkswagen thus holds 100 percent of the shares of Porsche AG via an intermediate holding company. The cash and share consideration of about €4.49 billion is based on the equity value of €3.88?billion for the remaining shares of Porsche?AG set out in the Comprehensive Agreement entered into in 2009, plus a number of adjustment items. Among other things, Porsche SE will be remunerated for dividend payments from its indirect stake in Porsche AG that it would have received, as well as for half of the present value of the net synergies realizable as a result of the accelerated integration, which amount to a total of approximately €320?million.
The accelerated integration of Porsche AG into the Volkswagen Group allows the implementation of Volkswagen?AG’s and Porsche?AG’s joint strategy more quickly. “The unique Porsche brand will continue to develop successfully under Volkswagen’s multibrand strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands”, said Winterkorn.
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Tags: Porsche, Volkswagen
