Porsche cleared for Volkswagen takeover | Rpmgo.com

Recently, a lot of buzz was created around Porsche wanting to takeover Volkswagen. Porsche, which currently owns 31% of VW wanted to increase its holdings in VW to 51% and become the major owner of VW and having majority voting rights. However, there was a problem with the German government, the so called “Volkswagen law”, to be more specific, which prohibited any company in owning more than 20% voting rights in Volkswagen.

But today, the European Court of Justice in Luxembourg decided to take down the German law, there for giving Porsche the clearing for takeover, the only problem Porsche might still be facing being the opposition at VW’s workers council. Porsche officials will get together on a meeting on November 12 so we expect more details to be made available after that meeting.

When Porsche raised its holdings in VW to 31% they spent 5 billion Euro ($7.1 billion), investment which is now valued at over 16 billion Euro ($22.8 billion). And if the “Volkswagen law” is repealed, they raised 8.6 billion Euro ($12.2 billion) to acquire the extra 20%.

Post tags : Porsche, takeover, Volkswagen, vw