Porsche was expected to fully merge with new parent Volkswagen by the end of the year, but the entire merger now looks to be on rocky ground. The deal is facing higher than expected legal and tax hurdles.
The original terms of the Porsche-VW merger called for the deal to be completed by the second half of 2011. However, German officials launched an investigation into two former Porsche chairmen, which Porsche said would push the merger back until at least 2012. Now it looks unlikely that the deal will get done at all.
Thanks to those legal troubles and additional tax complication, it looks unlikely that Volkswagen AG will fully merge with Porsche SE. However, VW still plans to take full control of Porsche AG – the automaker’s car-making division. VW currently holds a 49.9 percent stake in Porsche AG.
In case the deal doesn’t go through, Porsche SE is working on plans to attract investors as part of a stand-alone strategy.
References
1.’Porsche SE not…’ view
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