Porsche will now legally be able to take a majority holding in Volkswagen, after the European Court of Justice today (23 October) overturned a 47-year-old German law protecting VW from takeovers.According to the court's ruling, the law – commonly known as the VW law – restricts the free movement of capital and the freedom of establishment.The decision clears a path for Porsche to take a majority stake in Volkswagen, in which it already has a 31 per cent holding. The law prevented any individual from exercising a voting right of more than 20 per cent. The German government had fought against the EU's action, claiming that VW was a special case. The state of Lower Saxony, where VW is based, owns a 20 per cent stake in the company.Porsche is expected to buy more of VW, though not in the immediate future.
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