BRUSSELS, July 23 German sports car maker
Porsche (PSHG_p.DE) won permission from the European Commission
on Wednesday to acquire control of Volkswagen (VOWG.DE).
"The Commission's examination of the transaction showed that
horizontal overlaps between Volkswagen and Porsche are limited,"
the EU executive said in a statement.
"For all car segments concerned, Porsche will continue to
face several strong, effective competitors with significant
market shares," the statement said.
In March, Porsche's supervisory body authorised the purchase
of a majority stake in Volkswagen for an investment of nearly 10
billion euros ($15.73 billion).
Lifting its stake above 50 percent did not require Porsche
to make a full bid for Volkswagen (VW) because it made an offer
at the legal minimum price last year which few investors took
The German state of Lower Saxony, VW's second-biggest
shareholder with around 20 percent of the votes in Europe's
biggest automaker, said in March it would keep its stake and
continue to play an active role as Porsche's partner.
Porsche, controlled by the family of VW Chairman Ferdinand
Piech, has long been expected to gain majority control of VW
after Europe's highest court last year struck down a German law
that capped individual shareholders' voting rights in VW.
Porsche began building its VW stake in 2005.
In the wake of last year's ruling, the German government is
debating a new VW law whose draft version preserves a strong say
for VW staff and Lower Saxony, something Porsche is fighting.
(Reporting by David Lawsky; Editing by Ingrid Melander)