Frankfurt: The German luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car maker, by purchasing more than 50% of its shares, Porsche said late on Monday.
Porsche said in a brief statement that by buying new Volkswagen shares, it “will thus increase its participation to 50.76% “of the group’s capital, compared with 42% before.
As a result, Porsche is now obliged by Swedish law to make an offer for outstanding shares in the heavy truck maker Scania, in which Volkswagon is the dominant shareholder.
But the German sportscar company will offer a minimum price for Scania shares, and has no “strategic interest” in the company, the statement said.
Porsche had initially planned to acquire more than 50% of Volkswagen’s stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than €1,000 ($1,350) per share, making Volkswagen briefly the biggest company in the world by stock market valuation.
On Monday, Volkswagen shares closed at €254.74, close to the range Porsche had set for itself of between €200-250.
Porsche, which makes the 911sports car and Cayenne sports utility vehicle, plans to raise its stake in Volkswagen to more than 75% this year, which would give it total control over the group.