Volkswagen is planning to take full ownership of Porsche.Ã‚Â According to to German news magazine Der Spiegel, VW is revising an earlier plan to acquire 50 percent of the German sports car maker.
According to the magazine the sale will be completed in two phases – first 49.9 percent will be taken over similar to the initial plan, then VW will buy the remaining shares.
Porsche will recieve a approximately 8 billion euros which will help deal with their massive debts. The Porsche family will instead become a 50 percent owner in a joint VW-Porsche company. VW plans on making Porsche the tenth brand in the VW family.
The takeover ends a long power struggle between Ferdinand Porsche’s Grandsons Wolfgang Porsche and Ferdinand Piech. It all came to an end Friday when it was reported that Porsche CEO Wendelin Wiedeking was to be replaced.
Wiedeking has come under fire in the last year. It was under his guidance that Porsche’s debts increased in their own attempt to takeover VW. Porsche had acquired nearly 51 percent of VW stock and options for another 20 percent. The German state of Lower Saxony owns more than 20 percent of VW’s shares. The global economic downturn thwarted Porsche’s plans.
The plan also keeps Porsche in German hands. It was suggested that the Porsche family would sell part of their stake to theÃ‚Â Qatar Investment Authority.
The Porsche stock structure is quite unique. Porsche shares are publicly traded and the average person can buy stock, however none of the stock owned by the public are voting stocks. All voting shares in Porsche have remained in family hands.