Volkswagen is nearing an agreement to acquire the remaining 50.1 percent stake in Porsche SE's automotive business that it does not already hold, according to sources. They revealed that one of the roadblocks to a stake purchase deal is the approval from tax authorities in Germany. It’s believed that VW will announce a completed agreement within the next two weeks.
According to sources familiar with the talks, VW is planning to create an umbrella company to acquire the remaining shares in Porsche SE's automotive business, in which it already holds a 49.9 percent stake. VW has considered options to a 2009 agreement that entails a merger after US and German legal actions against the company’s valuation.
Under the plan under consideration, VW will fully integrate Porsche's carmaking business while the Porsche holding company alone takes legal responsibility for the results of the lawsuits. VW’s supervisory board will meet Monday to discuss the agreement, according to one source, although an announcement of the deal is not expected on the same day.
"VW is working on creating an integrated automobile company with Porsche under commercially sensible conditions and as quickly as possible," said Marco Dalan, a spokesman for VW.
Wolfgang Glabus, a Porsche spokesman, said that no agreement has been reached yet. If the merger does not push through, VW has the alternative to exercise options to acquire the remaining 50.1% stake in Porsche's carmaking unit for EUR3.9 billion ($5.2 billion), with Porsche being the holding company for the 50.7% of Volkswagen's common stock that it owns.