President and CEO of Porsche Automobil Holding SE Martin Winterkorn arrives for the annual shareholders meeting of Porsche in Stuttgart. German auto manufacturer Volkswagen wants to buy the second half of Porsche's car-making business before August 2014 when the purchase would be free of tax. - Reuters photo


BERLIN: Europe's biggest automaker Volkswagen said it will likely finalise the takeover of German luxury sports car group Porsche by August 1, paying 4.46 billion euros ($5.58 billion) plus one VW share.

The two companies “agreed today on this concept,” VW said in a statement issued late Wednesday.

VW currently owns 49.9 percent of Porsche, maker of the iconic 911 series of sports cars, and will acquire all of the remaining 50.1 percent under the deal.

The agreement “is good for Volkswagen, for Porsche and for German industry,” VW and Porsche head Martin Winterkorn said in the statement.

VW said the deal will produce synergies worth 320 million euros, which will be shared equal between the two groups who had originally been expected to complete their alliance sometime between 2012 and 2014.

Porsche tried to take over VW in 2008 but the attempt failed and the luxury car maker was in turn saved by Volkswagen.

VW said it would hold a press conference at 0800 GMT Thursday at its headquarters in Wolfsburg.

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