Porsche to buy controlling stake of Volkswagen
Luxury carmaker Porsche has said that it will be buying a controlling stake in fellow German carmaker Volkswagen, in what could be a 10 billion euro (7.7 billion) deal.
Barclays to buy Russia's ExpobankPorsche already owns 31 per cent of Volkswagen shares and on Monday the company's advisory board said it would raise the stake to over 50 per cent.
Despite the move, Porsche has said it has no intention of merging with Volkswagen.
According to the BBC, Wendelin Wiedeking, chief executive of Porsche said, "Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition."
Porsche also said that it needed a strong influence at Volkswagen, as they manufacture components for one third of Porsche cars, reports the BBC.
The state of Lower Saxony is the second largest shareholder in Volkswagen, with a 20 per cent stake. They said that they would be holding onto their stake in the company.
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