VW-Porsche merger will make them top auto makers

The planned acquisition by auto company Volkswagen of sports car manufacturer Porsche in Europe is set to make this giant German automobile company the world’s top auto maker, dislodging Japan’s Toyota down to number two.

The mergers of Volkswagen and Porsche have been approved by the boards of directors of the two car companies, thus finally ending years of acquisition battle between them.

The merger came as a result also of the agreement between the two estranged family clans who partly owns the German automobile giants to settle their difference in order to protect their stakes in the company.

First stage of the merger will start with Volkswagen taking over 49.9% of Porsche till the end of 2009. Complete takeover is scheduled by 2011.

Meanwhile, Porsche is expected to operate within the VW umbrella as its 10^th brand.

[via livemint.com]

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