Tuesday 8th December 2009

VW Takes 49.9 Per Cent Of Porsche

Volkswagen's merger with Porsche moves a step closer

---

Volkswagen has officially announced its purchase of a 49.9 per cent stake in Porsche's sports car business.

The deal for VW to buy the stake in Porsche AG was finalised a few weeks ago, but hasn't been made official until now.

VW has paid 3.9 billion euros (£3.53bn) for its stake in Porsche AG, whose 10.3 per cent return on sales makes it one of the world's most profitable car makers. VW says that the "planned integration of Porsche in the Volkswagen Group and the associated closer cooperation will realize significant synergies on both the income and the cost side".

In short, VW says that the merger with Porsche will eventually be worth 700 million euros (£636 million). The acquisition by VW of Porsche Holding Salzburg and Porsche SE will then take place in 2011, completing the merger of the two companies.

[Erijaso]

Hmm, I wonder if Seat will be able to have access to the porsche parts bin?

[LCR270]

so just how much is the remaining 0.2% worth to the seller or are investors queing up to sell and driving it down now ?

[RichardR]

How much synergy between Reading and Milton Keynes?

[matfitzpatrick]

I hope they dont move Porsche HQ from Reading, its about the only good thing we have got! I worked in there for an A-Level project when they owned Lamborghini UK. Lots of nice metal in there, German and Italian...including the Diablo that JK wrote off in the Cosmic Girl video I think.

[Lil' Joe]

That's gotta be pic of the week, shirly? Beautiful car.

1 PH point for whoever gets the exact model first.

[Neil_M]

Anyone any thoughts on what this means or could bring?

An exciting VW (only joking )?

[kambites]

Lil' Joe said:

That's gotta be pic of the week, shirly? Beautiful car.

1 PH point for whoever gets the exact model first.

It's a GT2. Can't say I'd use the word "beautiful" though.

Interesting news, it does make you wonder what the future holds in the way of platform sharing, etc. Could be good news or could be bad depending on what VW do with them.

Edited by kambites on Tuesday 8th December 16:13

[sprinter1050]

Am I missing something in the numbers here ?

Quote article: "VW says that the merger with Porsche will eventually be worth 700 million euros"

Yet they've just paid 3.9 billioneuros-- for only 49+% of Porsche ???

[RichardR]

kambites said:

Lil' Joe said:

That's gotta be pic of the week, shirly? Beautiful car.

1 PH point for whoever gets the exact model first.

It's a GT2.

Gen.1 997 GT2 to be precise!

[BlackSteel]

The death of Porsche is nearly upon us.

Soon to be assimilated into the BORG...Sorry (vw) empire. For ever more to become a bitza manufactor. What a shame.

I no longer dream of owning the mark & never will again

[Escort Si-130]

So why have they not gone 51%? To be the outright owners

[Konrod]

sprinter1050 said:

Am I missing something in the numbers here ?

Quote article: "VW says that the merger with Porsche will eventually be worth 700 million euros"

Yet they've just paid 3.9 billioneuros-- for only 49+% of Porsche ???

It means that there are synergy savings of €700m (over an unspecified period) whihc will be driving down supply side costs through economies of scale and common administration (which means overlapping jobs going).

The €3.9Bn has to be set against that, the operating profit coming in from Porsche and the growth in the balance sheet - as such it is a long term investment.

[thirsty]

BlackSteel said:

The death of Porsche is nearly upon us.

Soon to be assimilated into the BORG...Sorry (vw) empire. For ever more to become a bitza manufactor. What a shame.

I no longer dream of owning the mark & never will again

That is what happens when a feirce little dog trys to eat a big dog. This whole deal went upside down on Porsche very quickly. Have a little hope (maybe). It looks like they (VW) didn't screw up Lambos. And ... Actually, I always thought Mercs were the Borg empire.

[[AJ]]

BlackSteel said:

The death of Porsche is nearly upon us.

Soon to be assimilated into the BORG...Sorry (vw) empire. For ever more to become a bitza manufactor. What a shame.

I no longer dream of owning the mark & never will again

So you would never dream of owning a Ferrari (Fiat) or Bugatti, Lamborghini or Bently (all VW) because they have parent companies that own shares in them? I guess you'll have to wait for McLaren to buy their shares back from Mercedes and become independently owned again before you can get your name on a MP4-12C. Bummer.

So Porsche own 51% of VW and VW now own 49.9% of Porsche. So aren't Porsche really just bailing themselves out with VW money or did Porsche sell their VW shares back to VW?