Volkswagen Plans to Complete Porsche Purchase by End of 2012

Volkswagens already owns 49.9% of Porsche, and it intends to finally finish its purchase by taking over 50.1% of the fabled sports car company some time this year. It is estimated that the rest of the shares will cost Volkswagen around €3.9 billion. 

Porsche tried to buy Volkswagen in 2008, but in a bizarre turn, Volkswagen eventually bought a large portion of Porsche. There have been two hurdles standing in the way of Volkswagen finishing its purchase. First, Volkswagen would have had to pay €1 billion in taxes, but it has found a tax loophole where it can create a holding company for Porsche. 

The other hurdle was Porsche's desire to remain independent. It must be nice to have family buying your company because it looks like Porsche will get this as well. Volkswagen intends to sign a contract with Porsche saying that, although Volkswagen owns Porsche, Porsche is free to make its own investments and act independently. It is getting the best of both worlds. Not only will Porsche get access to Volkswagen parts bin, but it can act on its own. That is fantastic for Porsche, but maybe not so good for Volkswagen. 

Source Yahoo