Don't miss

Replay


LATEST SHOWS

FRANCE IN FOCUS

La vie en gris: The story behind France's famed rooftops

Read more

REPORTERS

Video: Olympic refugee team goes for gold

Read more

FOCUS

Taiwan's nuclear dumping ground

Read more

ENCORE!

Greece: Creativity in a time of crisis

Read more

BUSINESS DAILY

French growth grinds to a halt over strikes

Read more

IN THE PAPERS

Norway will 'move mountains' for Nordic neighbour Finland

Read more

IN THE PAPERS

French media ban on naming jihadists: 'Good intention, bad result'

Read more

EYE ON AFRICA

Gigantic snails are a delicacy in Ivory Coast

Read more

MEDIAWATCH

Hollande and Valls tell Trump: 'France is still France!'

Read more

Business

Volkswagen takes 49.9% stake in Porsche

Text by News Wires

Latest update : 2009-12-08

German carmaker Volkswagen has bought 49.9 percent of Porsche for 3.9 billion euros and announced ambitious targets to complete the purchase of the luxury brand by 2011 and unseat Japan's Toyota as the world's leading carmaker by 2018.

AFP - German auto maker Volkswagen announced Monday that it had acquired a 49.9-percent stake in luxury sports car-maker Porsche for 3.9 billion euros (5.8 billion dollars).
  
Last week, Volkswagen shareholders overwhelmingly approved a capital increase aimed at financing the purchase. The vote will allow Volkswagen to raise about 8.0 billion euros by 2014.
  
Europe's biggest auto maker plans to complete the takeover of Porsche by 2011 and wants to eclipse Toyota, the world auto leader, by 2018.
  
Volkswagen predicted that the acquisition of Porsche would mean an annual increase in operating earnings of around 700 million euros.
  
The acquisition, which caps months of tension between the two groups, is for both of them a return to their roots, as Porsche and VW were part of a vast automobile enterprise launched by Ferdinand Porsche in the first half of the last century.

Date created : 2009-12-07

COMMENT(S)