Volkswagen to Buy Porsche for $11.28 billion

Now this deal will surely make Volkswagen a force in the automotive industry and will make them a real threat to be the German automaker. Volkswagen has offered Porsche’s major stakeholders 8 billion Euros (around $11 billion) to buy Porsche’s sports car business. Reports have it that Porsche’s controlling families (Porsche and Piech) will agree on the deal later this week on the 23rd. With the deal, Volkswagen will own a 49.9 percent of Posche AG. This serves as

a prelude to Volkswagen’s buyout of the sports car business. The merger will create consolidate 10 brands. As for Porsche, the sale will help the company deal with its 10 billion euro debt that it had incurred. Not all people are happy with the move. Current Porsche CEO Wendelin Wiedeking, who is against the sale, plans on taking a 100 million euro severance package.

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Volkswagen to Buy Porsche for $11.28 billion