Porsche looks set to be finally taken over by Volkswagen, after the VW board approved the creation of what it described as “an integrated automotive group with Porsche under the leadership of Volkswagen.”
The deal will effectively merge Porsche and VW, after nearly three years of wrangling that started with Porsche aiming to swallow VW. Volkswagen had turned its back on the merger as recently as Monday, when it emerged that Porsche owed the German state around €3bn in taxes.
Porsche’s debt had also grown hugely in the last 12 months as it borrowed to finance its purchase of VW stock VW chairman Martin Winterkorn drew parallels with the way VW has administered Audi. “Like Audi today, Porsche can also continue its independent development under the aegis of Volkswagen and preserve its own identity,” he said.
Volkswagen will also now accept investment from the state of Qatar, which will become a shareholder. The Porsche and Piech families will remain “the major active shareholder.”
The announcement from VW follows the resignation of Porsche’s CEO Wendelin Wiedeking this morning. Wiedeking had been the architect of Porsche’s attempt to takeover VW.