EC approves proposed acquisition of Volkswagen by Porsche

Automotive

The European Commission (EC) has cleared the proposed acquisition of Germany's Volkswagen by Porsche, a news release said.

After examining the operation, the commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

The EC found that horizontal overlaps between Volkswagen and Porsche are limited and that, for all car segments concerned, Porsche will continue to face several strong, effective competitors with significant market shares.

The EU executive arm also concluded that the merger would not lead to any negative effects on markets for the manufacture and supply of spare parts and distribution.

While Volkswagen is active within a wide range of different types of passenger cars and commercial vehicles, Porsche is focusing on sports cars and SUVs.

The two companies have been cooperating for many years, especially in the development of sports utility vehicles (SUVs), which Porsche Holding is active in developing.

Porsche, already the largest shareholder in Volkswagen, entered in June 2008 into a share purchase agreement to acquire an additional share of 4.92% of the voting capital in Volkswagen.

After the transaction, Porsche will be in a position to exercise de facto control over Volkswagen Group, which includes the vehicle brands Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini and Bugatti. (Xinhua)

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