Report: Volkswagen to buy Porsche for $11.28 billion

A report by Germany’s Der Spiegel says that Volkswagen AG has offered Porsche SE’s controlling families roughly 8 billion euros ($11.28 billion) to buy the company’s sports car business. The report said that the Porsche and Piech families will agree on the deal as early as July 23.

When it’s all said and done, Volkswagen will own a 49.9 percent stake in Porsche AG. At a later date, Germany’s largest automaker will acquire the rest of the sports car maker, in a deal that would create an automotive group with 10 brands.

The sale would help Porsche pay most of its 10 billion euro debt sources told Reuters.

Disgruntled Porsche CEO Wendelin Wiedeking, who opposes the deal, is planning on taking a severance package that could total more than 100 million euros. Production chief Michael Macht will replace him as the head of Porsche in the mean time.

– By: Omar Rana

Source: Reuters