- FRANKFURT: Volkswagen said it would delay a merger with Porsche Automobil Holding SE beyond 2011 and examine other ways of creating an “integrated auto group” amid unresolved legal issues that have come to haunt the maker of the iconic 911 sportscar.
Porsche and Volkswagen in 2009 agreed to seal a merger deal by the end of 2011, but in February signaled the merger faced delays because of legal issues and a criminal investigation of its former chief executive and its finance head.
On Thursday, Volkswagen said that following discussions with Porsche, Europe’s largest auto maker “reached the conclusion that the planned merger with Porsche SE cannot be implemented within the time frame provided for in the Comprehensive Agreement.”
In a separate statement Porsche said both companies could not agree on the valuation of Porsche SE required for calculating the exchange ratio.
Volkswagen further said that in the coming weeks, its board of management will, “analyze whether other potential courses of action exist for achieving the goal of creating an integrated automotive group with Porsche.”