German media have reported today that Volkswagen has agreed to buy 50 per cent of debt ridden Porsche and will opt for a total buyout later this year.
The announcement comes as a surprise. Earlier in the year Porsche made a failed bid to purchase Volkswagen, but access to liquidity markets dried up and Porsche instead found itself in significant debt.
This is Volkswagen’s 10th brand, making it Europe’s largest car maker. The deal is said to be worth €8bn ($11.3bn)
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