German car company Volkswagen, has always been safe from a foreign takeover, thanks to a rule known as the VW law, which says that no one individual can own more than 20% of the company. The trouble is the EU is expected to decide this law is illegal, thus opening the floodgates. Last week, rumours had it that overseas investors were planning to invest in the company.
But Porsche has come to VW’s rescue, buying up a 20% stake in the company, costing 3bn euros. With the government of lower Saxony owning an 18% stake, it would appear the company is to remain safely in German hands.
Wendelin Wiedeking, Porsche’s chief executive, said: “With this commitment, we want to secure our business relations with VW and safeguard an essential part of our future planning over the long term.”
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