Porsche to Get Majority of Volkswagen


German sports car maker Porsche will increase its 31 percent voting stake in Volkswagen to a majority but does not intend to merge the two carmakers, Porsche said on Monday.

At an extraordinary meeting on Monday, Porsche's supervisory body authorized the move, which the company said would represent an investment of almost 10 billion euros ($15.17 billion).

"Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition," Porsche Chief Executive Wendelin Wiedeking said.

Lifting its stake above 50 percent would not require Porsche to make a full bid for VW, because it made an offer at the legal minimum price last year that few investors took up.

There was no immediate comment from the state of Lower Saxony, VW's second-biggest shareholder with around 20 percent of the votes.

Porsche has long been expected to gain majority control of VW, Europe's biggest carmaker, after Europe's highest court last year struck down a German law that capped individual shareholders' voting rights in VW.

Porsche shares rose 2.2 percent to 115.99 euros while Volkswagen stock rose 1.8 percent to 152.70 euros.

Porsche said in a statement it had instructed management to start all steps needed to gain regulatory and antitrust approval for the move.

"The reviews by the regulatory authorities are expected to take several months. As soon as the requisite clearances have been obtained, Porsche SE can acquire the majority of the shares in Volkswagen," it said.

VW, which earlier announced it was getting majority control of Swedish truckmaker Scania, was not immediately available for comment.