Volkswagen buys out Porsche
Aug 07, 2012, 09:29
Volkswagen officially closed a deal on buying out Porsche and made it a 12th brand within German automotive manufacturing group.
At the moment Volkswagen owns a wide range of companies: from Italdesign Giugiaro automobile design and engineering company, Ducati – the company manufacturing and distributing motorcycles, to trucks manufacturing companies Scania and MAN.
The deal was closed after Volkswagen bought up 50.1% of Porsche for €4.49 billion. Remaining 49% of Porsche Volkswagen has already purchased in 2009 for €3.9 billion. As it has already been reported, Volkswagen will own Porsche via immediate holding company.
It is noteworthy, that initially Porsche tried to swallow Volkswagen by itself. Seven years ago Porsche bought 51% of Volkswagen but it was forced to take large loans from banks and as a result that led it to financial losses. For example, according to the results of 2008-2009 financial year, Porsche has lost €4.4 billion.
In 2011 profit of Porsche was already €2.05 billion and proceeds – €10.9 billion. In the first quarter of the current year net profit of Volkswagen reached €3.18 billion and proceeds composed €47.3 billion.