Back in 2009, Volkswagen acquired a 49.9% stake in the Porsche concern - this was the first stage in the merger of the two automakers. According to the plan, the full merger process was supposed to take about four years, but by the end of 2011 it was decided to speed up the deal.
Interestingly, Porsche itself has repeatedly tried to acquire Volkswagen after making a lot of money selling the new Cayenne model. But due to the 2009 financial crisis, Porsche did not have the money to buy a 75% stake in Volkswagen. Moreover, the Porsche concern has managed to get into debt in the amount of 10 billion euros. However, Volkswagen did not experience any particular problems during the crisis, and the decline in its production was insignificant. Firstly, because he is a longtime sales leader in Europe, and secondly, because his cars are gaining popularity in third world countries.
Therefore, in 2009, Volkswagen's management suggested that Porsche shareholders sell the company and pay off its debts. But the amount demanded for the Porsche turned out to be grossly overstated. Therefore, the negotiations dragged on for the entire 2009. In December 2009, Volkswagen finally managed to negotiate the purchase of 49.9% of Porsche shares for 3.9 billion euros. To raise this amount, VW had to sell 135 million of its non-voting preferred securities. Porsche used part of the proceeds to pay off its debts to banks.
In early 2011, following the merger plan, Volkswagen acquired the Porsche dealership network for 3.3 billion euros, which was the largest in Europe and had the exclusive right to sell all Volkswagen vehicles in Austria, as well as in Central and Eastern Europe.
For the final purchase of Porsche, Volkswagen lacked 50.1% of the shares with a total value of 4.460 million euros. For Volkswagen, this is not a critical amount, and Porsche shareholders did not mind. But a serious threat has arisen - if the merger is carried out as planned, that is, in 2014, taxes will increase to 1 billion euros from both firms. And this will significantly reduce the benefits of purchasing a Porsche. But lawyers found a way out of this situation and expedited the deal.
Volkswagen will buy out 50.1% of the shares from Porsche and receive an additional common share. This will make it possible to present the transaction as a restructuring of both companies and thereby legally reduce the tax base. The deal is scheduled to be fully completed by August 1, 2012. As a result, the German sports car manufacturer will become 100% owned by VW and the tenth brand under its control. Both companies already have one president and CFO, but the transaction is not legally completed yet, which creates some difficulties and risks for cooperation.
For fans of both car brands, it is reported that Porsche will not lose its exclusivity as a result of the deal, and Volkswagen will add several sports and luxury cars to its lineup.
