Hang on a minute…. Niche sports and performance car manufacturer Porsche is seeking a majority ownership stake in motor manufacturing behemoth VW?
Most recently the European Court of Justice (ECJ) ruled against a 47-year old law protecting Volkswagen from a hostile foreign takeover. In a judgement with potentially far reaching consequences for German companies, the ECJ ruled that the so-called ‘VW Law’ could not be justified on the grounds that it protected the interests of minority shareholders.
This gives the green light to Porsche chief executive, Wendelin Wiedeking, to increase the current stake of 31% to 51%, thus gaining overall control and majority ownership of Volkswagen.
If you are still slightly confused how a seemingly niche player like Porsche is able to amass such buying power it is worth noting that the company based in Stuttgart is the world’s most profitable car company in terms of margins. Hence it’s ability to both expand the Porsche model range and acquire companies the size of Volkswagen!