German car maker Volkswagen today said it has acquired the automobile trading business of Porsche Holding Salzburg for 3.3 billion euro.
"Volkswagen has acquired the operating business of Porsche Holding Salzburg (PHS) in accordance with previous announcements. The transfer of the automobile trading company takes place at a value of 3.3 billion euro on March 1, 2011. The registered office and corporate headquarters will remain in Salzburg," the German firm said in a statement.
Following the acquisition of PHS, VW is completing the next planned step towards the creation of integrated automotive group of Volkswagen and Porsche as part of a global agreement between the two companies, it added.
"The business performance of Porsche Holding Salzburg (PHS) is outstanding. It is one of the world's most efficient and profitable automobile trading companies and will therefore strengthen the Volkswagen Group's sales activities," Volkswagen Chief Executive Officer Martin Winterkorn said.
Besides, Volkswagen is acquiring all the automobile operations of PHS such as the wholesale and retail business, Porsche Informatik, Porsche Bank, Porsche Immobilien and Porsche Versicherung as well as the PGA Motors headquartered in Paris, the company said.
Volkswagen Board Member (Sales) Christian Klingler said: "Under the Volkswagen Group umbrella, PHS will retain its status as an independent organisational unit and continue with its business model unchanged."
All assets will remain intact and this will be applicable to the automobile trading business relating to all non-Group brands, he added.
Besides the Europe, PHS has a strong presence in Austria, Western and South Eastern Europe as well as in China. In 2010, the company had sold 5,65,000 new and used vehicles generating sales revenue of 12.78 billion Euro. It employs about 20,900 people.
In 2009, Volkswagen Aktiengesellschaft had bought 49.9% stake in luxury car maker Porsche AG for 3.9 billion euro.
