The two German powerhouses, Volkswagen AG and Porsche Automobil Holding SE, entered into a merger agreement to create a joint company back in 2009. The merger would have been made final by the end of 2011, but according to an Automotive News article, it will be pushed back due to legal issues. As of now, both companies are examining their current status but the 2011 merger will not take place.
A criminal investigation into Porsche’s former CEO and finance head as well as an investor lawsuit seems to have VW extra cautious. In a press release issued by VW, they mentioned, “From Volkswagen’s perspective, the continuing legal hurdles mean that it is currently impossible to quantify the economic risks of a merger and therefore to perform the valuation of Porsche SE required to determine the exchange ratio. The main causes of uncertainty are the ongoing proceedings and actions brought against Porsche SE in Germany and the USA for alleged market manipulation.”
Source: AutomotiveNews.com & Volkswagen
