If you thought Volkswagen‘s takeover of Porsche was all but done, think again. A new report suggests the merger of the two companies may never be complete, with the possibility of Porsche trying to go independent.
It’s been over two years since talks of the merger between VW and Porsche began, but apparently the deal is far from done. Over a year ago VW bought a 49.9-percent stake in Porsche AG – Porsche SE’s car-making entity — with plans to fully acquire the automaker by the end of this year. However, legal troubles slowing the deal may have prompted Porsche to reconsider its independence.
Now over a year into the merger, parent company Porsche SE is considering returning the automaker to a stand-alone operation according to a report from Automotive News. Porsche now claims the possibility of a complete merger between the two has a roughly 50 percent chance of happening.
Tax and legal troubles associated with the deal have slowed the deal substantially, prompting Porsche SE to reconsider the deal. Several hedge funds locate within the United States have brought suit against Porsche for its secretive trading activity when attempting to overtake VW. The hedge funds involved in the case are suing Porsche for its market manipulation, causing over $1 billion in losses. A similar case in Europe has been filed claiming losses of $3.5 billion.
Now nearly two years in the making, do you think the VW-Porsche merger will ever be finalized? Or would you prefer the sports car maker to regain its independence? Share your thoughts in the comments section below.
Source: Automotive News (Subscription required)