After four months of negotiations, the Gulf state of Qatar has taken a 10 percent stake in German automaker Porsche. The news comes just one day after Volkswagen agreed to purchase a 42 percent stake in the heavily indebted sports car maker.
According to Automotive News, Qatar Holding LLC – a state-run investment firm – has agreed to purchase a 10 percent stake in Porsche. Qatar’s stake in Porsche marks the first time an outsider will wield some control over the family-owned automaker.
Additionally, the agreement will grant Qatar access to a 17 percent stake in Volkswagen, Porsche’s new parent company. Porsche had been holding on to the call options for several months, but the automaker’s $12 billion debt prevented it from exercising the options.
Qatar will reportedly fork over $378.3 million – sourced from 16 banks – for the investment.
