German automobile manufacturer Volkswagen AG (VW) has announced that it will acquire a 49.9 per cent stake in sports car maker Porsche AG by end 2009 as part of larger plans for an eventual full merger with Porsche Automobile Holding SE by 2011.
According to German media, Europe's largest carmaker is planning a complete takeover of Porsche in a series of two transactions.
VW expects to pay €3.9 billion ($5.82 billion) for the stake, a larger share than the previously announced initial 42 per cent (See: VW acquires 42 per cent stake in Porsche for $4.7 billion).
The larger stake is due to better than expected progress on collaboration projects between the two partners.
''This positive development for both companies, which is an expression of the compelling industrial logic behind the merger, is now to be underscored by a larger participation in Porsche AG. Volkswagen is thus securing a higher share of the increase in the value of Porsche expected from the joint projects at an early stage,'' VW said.
An increase in VW's preferred share capital is planned for the first half of 2010 in order to refinance the participation and maintain VW's good credit rating.