VW set to gobble Porsche

2012-07-05 15:27

BERLIN, Germany - Volkswagen says it is on track to complete the takeover of sports-car manufacturer Porsche by the end of July, 2012.

VW AG said Porsche AG would become another fully integrated brand of the Volkswagen group as of August 1. The Wolfsburg-based group, Europe's most prolific automaker, includes Audi, Volkswagen, Seat, Bugatti, Bentley and truck makers MAN and Scania.

The deal is also set to restructure the companies' complicated ownership ties.

VW says the missing 50.1% in Porsche AG's capital will be bought from holding company Porsche SE for 4.46-billion euros plus one VW share. Porsche SE, in turn, currently holds a sizeable stake in Volkswagen and several executives and major shareholders are active in both firms.