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| Carmakers Porsche and VW to merge | Carmakers Porsche and VW to merge |
| (about 1 hour later) | |
| Carmaker Porsche says it has agreed a merger with fellow German manufacturer Volkswagen (VW) after weeks of talks between the two firms' management. | Carmaker Porsche says it has agreed a merger with fellow German manufacturer Volkswagen (VW) after weeks of talks between the two firms' management. |
| The luxury carmaker said in a statement that it wanted to see the "creation of an integrated car manufacturing group". | The luxury carmaker said in a statement that it wanted to see the "creation of an integrated car manufacturing group". |
| VW hailed the decision of the Porsche and Piech families, owners of Porsche group, to create the merger. | VW hailed the decision of the Porsche and Piech families, owners of Porsche group, to create the merger. |
| It means a Porsche takeover of VW will not happen. The format of the new group will be decided in the next four weeks. | It means a Porsche takeover of VW will not happen. The format of the new group will be decided in the next four weeks. |
| Talks will now take place between the two carmakers, VW's home state of Lower Saxony, and employee representatives. | Talks will now take place between the two carmakers, VW's home state of Lower Saxony, and employee representatives. |
| The state's president Christian Wulff said in a statement: "We are ready for discussions, which must be carried out quickly." | The state's president Christian Wulff said in a statement: "We are ready for discussions, which must be carried out quickly." |
| Brand independence | Brand independence |
| Porsche will now hold further discussions with VW | |
| The move should unite 10 brands under one roof, Porsche said. | The move should unite 10 brands under one roof, Porsche said. |
| Nine of the brands are owned by VW, and the other is the Porsche sports car brand. | Nine of the brands are owned by VW, and the other is the Porsche sports car brand. |
| "In the final structure 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured," a Porsche statement said. | "In the final structure 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured," a Porsche statement said. |
| It also said that its plan would also include unspecified "capital measures". | It also said that its plan would also include unspecified "capital measures". |
| In January, Porsche announced it had increased its stake in Volkswagen to more than 50%, and said it planned to lift its stake in VW to 75%. | In January, Porsche announced it had increased its stake in Volkswagen to more than 50%, and said it planned to lift its stake in VW to 75%. |
| However, even with a 75% stake it would not have been able to take complete control as the "VW law" allows the state of Saxony, which holds 20%, to block strategic decisions. | However, even with a 75% stake it would not have been able to take complete control as the "VW law" allows the state of Saxony, which holds 20%, to block strategic decisions. |
| Stock markets had closed before the announcement, with Porsche shares up 1.2%, and VW's down slightly, by 0.4%. | Stock markets had closed before the announcement, with Porsche shares up 1.2%, and VW's down slightly, by 0.4%. |