Porsche has been quickly amassing stock and options in Volkswagen, but the automaker finally pushed its direct ownership in VW to over 50 percent (from 42.6 percent) with the purchase of an additional $8.49 billion in stock. Porsche had acquired 74.1 percent of VW in combined stock and options, but the automaker needed to increase its share for direct ownership.
Porsche had previously announced that it was delaying its majority acquisition due to the economic conditions that are plaguing every automaker.
Shares in VW had skyrocketed late last year as a result of the planned takeover.
According to German law, Porsche will now be obliged to make a takeover offer to Swedish truck manufacturer Scania, which was once part of the Saab-Scania group until the automaking division was taken over by General Motors. VW owns about 69 percent of Scania’s voting shares, though analysts predict that the offer will be perfunctory and not likely to be followed up on by Porsche.
01/06, 9:38 AM
posted by:
howsmydriving
There are some good synergies here: a company that thinks engines belong in the back is taking over a company that thinks transmissions belong in the front.
01/06, 10:46 AM
posted by:
yarddog82abn
The Big Fish eat the little fish… and besides they shear most of the parts already, so what is going to change now???
01/06, 11:41 AM
posted by:
Borat
Nothing going to change. The state government of Lower Saxony which owes 20-25% of total shares still has controlling interest(just like Ford foundation owning 5% of value controls over 40% of company vote and board).
01/06, 11:41 AM
posted by:
f1racer24
If porsche is going to be the main shareholder…does it have any say in the Bentley Division? Does VW still own it?
01/06, 1:17 PM
posted by:
JakeK66
I believe it has as much the say in the Bentley division as it does VW, as well as some say in Lamborgini and Bugatti, but they all should be safe as none are directly competitive to Porsche. I still think something’s gonna change in Audi before anything else, at least with the smaller sports cars – upcoming R4 and the populat R8 are barking at the Porsche buyers.
01/06, 1:54 PM
posted by:
Scarface03
The two companies have been “synergistic” for so long, the share count is almost academic. Lest we forget that VW’s former CEO and current chairman of VW’ supervisory board, Ferdinand Piech, owns more shares in Porsche than everyone in the world who doesn’t have a Porsche name.
And don’t forget who Piech is named after? Another dude by the name of Ferdinand–his grandfather, Dr. Porsche himself. Porsche’s largest shareholder is Piech’s counsin, Wolfgang Porsche.
It’s all in the family.
I think JakeK66 is right–Audi will be affected the most. Audi’s been marketing the R8 as the 911 alternative, but Porsche is helped because there are still a wide variety of 911’s that’ll sticker for less than the R8 asking price. The R4, on the other hand, I predict will be axed. It will probably be too close in price to the Boxster.