Volkswagen AG said Monday it has acquired a 49.9% stake in Porsche Automobil Holding SE's core sportscar operations for EUR3.9 billion as planned, and reiterated that the merger with the Stuttgart-based firm is expected to be finalized in 2011.
In a statement, Europe's largest auto maker by sales confirmed it plans to buy the Porsche Holding Salzburg retail operations as the next step.
Last month, Volkswagen's and Porsche's supervisory boards had cleared the way for the tie-up by approving contracts determining details of the complex integration.
The approval drew a line under a fierce power struggle between the two auto makers in recent years.
Porsche initially tried to acquire its much bigger peer, but it ran out of funding as credit markets contracted due to the economic downturn and demand for luxury cars collapsed. Porsche's net debt ballooned to EUR11.4 billion as at July 31. VW is now driving the deal and plans to integrate Porsche's sportscar operations as its 10th brand, along with nameplates such as Audi, Skoda and Seat.
Volkswagen said Porsche "ideally complements the brand portfolio." Porsche will "allow Volkswagen to further expand its position in the premium business."
"In turn, as an independent brand under the roof of the Volkswagen Group, Porsche will have the potential for significant additional growth," Volkswagen said.
The Wolfsburg-based company said the deal will have "a sustained positive effect" on earnings because "with a return on sales of 10.3%, Porsche is the world's most profitable automobile manufacturer."
Volkswagen said the tie-up will create significant income and cost synergies. Due to these synergies Volkswagen's annual operating profit "is expected to increase by some EUR700 million in the long term," VW said, echoing previous statements.
