Brussels, 24/07/2008 (Agence Europe) - On Wednesday 23 July, the European Commission cleared the proposed acquisition of Volkswagen of Germany by the German company Porsche. The transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. Porsche Holding is mainly active in the wholesale and retail distribution of passenger cars and spare parts (especially sports cars and sports utility vehicles) in several countries in the EEA. It has also been active in the wholesale and retail distribution of Volkswagen's car brands, as well as other car brands in a number of countries. Volkswagen develops, manufactures, markets and sells passenger cars and light commercial vehicles, including spare parts and accessories. The company also distributes vehicles. The Volkswagen Group includes the vehicle brands Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini and Bugatti.
To two companies have been cooperating for many years. Porsche is already the largest shareholder in Volkswagen. In June 2008, Porsche entered 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 (Porsche currently controls 31% of Volkswagen and intents to increase this to more than 50% by the autumn).
The Commission's examination of the transaction showed 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. On the markets for the manufacture and supply of spare parts and on the distribution markets, the transaction is not expected to lead to any negative effects on these markets. (A.B./trans/rh)