Porsche announced last night that it is to officially merge with its fellow German car maker Volkswagen (VW), ending the formers thoughts of taking over the latter.
The two automotive firms will now make an “integrated car manufacturing group” following a meeting between the bosses of the two firms in Salzburg last night.
Porsche had wanted to take over VW – which is 15 times larger – and had built up its stake in the firm to over 50% over the last three years. Since the downturn kicked in though, it became increasingly clear that Porsche would not have the funds for a full takeover.
The two companies have now agreed to merge instead and will have 10 separate auto brands under one management, nine of which come from Volkswagen.
There had been talk of VW launching a counter takeover before the merger was agreed. Porsche is now reportedly €9bn ($12bn) in debt, having spent €23bn ($30.65bn) on stake building over the last few years.