Porsche's attempt to take over VW has come to an end after the families behind the two car giants agreed that they would merge the luxury carmaker's automotive arm with its larger rival.
The deal, announced after a family meeting in Austria yesterday, will see "the creation of an integrated car manufacturing group," according to a statement from Porsche.
Crucially, the merger will enable Porsche to reduce the €9 billion debt burden it built up in trying to take over VW. The new agreement sees 10 brands under the umbrella of an "integrative leading company". The independence of all brands and explicitly of Porsche shall be ensured, the statement continued.
The agreement closes the family rift that had seen Porsche supervisory board chairman Wolfgang Porsche pitted against relation Ferdinand Piech, chairman of VW. Both companies will now intensify talks on the future structure of the new group.
Families meet to resolve Porsche/VW strategy