VW seals €3.3bn Porsche deal

Volkswagen is to pay €3.3bn ($4.7bn) for a 42% stake in Porsche’s main production division, the two German carmakers said on Thursday as they moved towards full integration. In a deal that amounts to a rescue of debt-laden Porsche, VW will also buy the auto trading business of Porsche Holding Salzburg, Europe’s biggest vehicle dealer. The deals announced are set to culminate in a complex merger of VW and Porsche SE – the holding company of the sports car maker, and owner of 50.8% of VW – during 2011.