Volkswagen, Porsche announce merger deal

• Source: xinhua
• [15:36 August 14 2009]
• Comments

The supervisory boards of German carmakers Volkswagen and Porsche Thursday both ratified a merger deal between the two companies.

Under the agreement, Volkswagen will have a 42-percent stake in Porsche, Porsche's distribution centers in Austria will be sold to Volkswagen, and Volkswagen chief executive Martin Winterkorn will become head of both companies.

When merger related affairs finish by 2011, Porsche will become the tenth brand of the Volkswagen group. The new giant carmaker will remain headquartered in Wolfsburg. Germany's lower saxony state will continue to be Volkswagen's second largest shareholder and have veto power for major policies.