Volkswagen has announced that there will be delay with its merger with Porsche Automobil Holding SE. The merger could be delayed past 2011 due to unresolved legal issues and as the two look for ways of creating an integrated group.
In 2009, Volkswagen AG and Porsche both agreed to have a merger deal completed by the end of 2011. However, Porsche was facing investor lawsuits and a criminal investigation of the company’s former CEO and CFO.
“Following discussions with Porsche Automobil Holding SE (Porsche SE), Volkswagen Aktiengesellschaft’s Board of Management has reached the conclusion that the planned merger with Porsche SE cannot be implemented within the time frame provided for in the Comprehensive Agreement,” Volkswagen said in a statement. “Nevertheless, all parties remain committed to the goal of creating an integrated automotive group with Porsche and are convinced that this will take place.”
– By: Omar Rana