Volkswagen (VOWG_p.DE) expects to pay 3.3 billion euros ($4.55 billion) to acquire Europe's largest independent auto dealer, Porsche Holding Salzburg, in a deal that is expected to close in the first half of 2011.
Volkswagen said in a statement that it would gain ownership over the privately-held retail group at the latest by the end of next September now that the owners exercised on Wednesday their put option.
The Salzburg-based dealership chain has long been a cash cow for the Porsche and Piech clans, since it had the exclusive right to sell all cars manufactured by the Volkswagen group in Austria and Central and Eastern Europe.
Last year's near collapse of automotive holding Porsche SE (PSHG_p.DE), when it amassed a pile of debt in the attempt to acquire full control over Volkswagen, forced the families to agree to a sale of Porsche Holding Salzburg (PHS) asset to finance a 2.5 billion euro capital increase at their listed vehicle.
Through the sale of 421,000 new vehicles, the Austrian dealership chain generated revenues of 12.2 billion euros in the fiscal year that ended on March 31 and achieved an "above-average profitability," according to Volkswagen.
"PHS will retain its status as a single organizational unit with its successful business model as well as all assets and all brands," said Volkswagen Chief Executive Martin Winterkorn in the statement.
VW had said last December the business had an operating margin of 3.7 percent in fiscal 2008/09 after generating consolidated sales of 10.8 billion euros and an operating profit of roughly 400 million euros.
