Volkswagen plans to buy Porsche auto unit | autos | Hindustan Times
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Volkswagen plans to buy Porsche auto unit

autos Updated: Jul 25, 2009 14:21 IST

Volkswagen, the biggest European carmaker, said on Thursday that it planned to progressively buy the automobile activities of its main shareholder Porsche and to merge the two companies.

The VW supervisory board approved a plan to create an integrated auto maker with Porsche, a statement said a few hours after Porsche's board had also given the deal a green light.

"The integrated group should emerge from the progressive acquisition by Volkswagen of a participation in Porsche SA and the complete mergers of Porsche SE and Volkswagen AG," the VW statement said.

Porsche SA is Porsche's core automaking unit, while Porsche SE is the overall holding company.