Recession! What recession!
Porsche has taken over Volkswagen, Europe’s largest car manufacturer, having bought over 50% of VW shares, the sportscar manufacturer announced last night. Porsche said in a statement that it had bought new shares and it ‘will thus increase its participation to 50.76%’ of the group's capital, compared with 42% before.
Oddly, Porsche must now make an offer for outstanding shares in truck maker Scania in which VW is the dominant shareholder, under Swedish law. However, the carmaker said it has no ‘strategic interest’ in Scania and therefore will bid the minimum price.
Porsche has been looking to buy more than 50% of VW’s shares for a while but has been stopped by fluctuating share prices. Porsche's takeover sees a relatively small family-run business take over one of the largest car companies in the world.
It is understood that much of Porsche’s interest in VW lies in its manufacturing capabilities and technological know-how. The company is now understood to be looking at increasing its stake to 75%, which would give it full financial control.