The merging of the two German automakers Porsche and Volkswagen has be cancelled today. Porsche owns 51% of Volkswagen, but is going through big difficulties. Volkswagen offered to buy 49.9% of Porsche's share, but the luxury automaker refused.
There are two main reasons in this refusal. Porsche has a big debt, but does not look ready to abandon its independeance to deal with it. This debt is mainly due to the redemption of the 51% of Volkswagen.
The two cousins Mister Piech and Mister Porsche, are opposed on the solution. Mister Piech is in favor of a merging between the two automakers, whereas mister Porsche supports Porsche's CEO, who wants to keep his group independent.
There are now three possible scenarios : Volkswagen buys Porsche, the purchase of options on Volkswagen shares of approximately 20% of the shares held by Porsche, or both.
Francois-Xavier Motte
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