German carmaker Volkswagen has finalised the acquisition of remaining 50.1% share in sports car maker Porsche and to form an integrated automotive group by 1 August 2012.
Porsche, which currently controls half of the business which is not owned by Volkswagen, will receive nearly EUR4.46bn and one single common share following the acquisition.
Volkswagen Aktiengesellschaft Board of Management chairman Martin Winterkorn said the unique Porsche brand will now become an integral part of the Volkswagen Group.
"Combining their operating business will make Volkswagen and Porsche even stronger - both financially and strategically - going forward," Winterkorn said.
"We can now cooperate even more closely and jointly leverage new growth opportunities in the high-margin premium segment through targeted investments in pioneering products and technologies."
The merger of Porsche's profitable automotive business is expected to provide a positive effect on Volkswagen's combined profit.
According to the company, the current deal is part of an agreement signed in December 2009 to incorporate both the firms
Volkswagen CFO Hans Pötsch said the accelerated integration will allow the company to start implementing a joint strategy forPorsche's automotive business more quickly, to realize key joint projects more rapidly, and hence to leverage additional growth opportunities in attractive market segments.
"It will also enable Volkswagen AG and Porsche AG to concentrate fully on their operating business by making day-to-day cooperation much simpler," Pötsch said.