Wolfsburg, Germany – Volkswagen AG has agreed to buy a 42 per cent stake in Porsche, with the two companies merging into an integrated company by the end of 2011.
Volkswagen will pay up to €3.3 billion for the initial stake in Porsche AG. The combined company will contain ten brands, including Audi, Lamborghini, Bentley, Bugatti, Skoda and Seat.
According to Automotive News, Porsche had sought control of Volkswagen, but took on more than €10 billion in debt. Volkswagen supplies components for about a third of Porsche’s vehicles, including bodies for the Cayenne and Panamera. The report said that Porsche’s controlling families will sell their Porsche Holding dealer group to Volkswagen by 2011.