July 05, 2012 - 4:21 AM
BERLIN - Shares in Volkswagen AG have soared higher after Europe's biggest automaker announced a deal to complete the takeover of sports car manufacturer Porsche by the end of the month.
Volkswagen's shares were up 5.8 per cent at €135.35 ($170.14) in morning trading in Frankfurt on Thursday.
Volkswagen announced Wednesday night that Porsche will become a fully integrated brand of the Wolfsburg-based company as of Aug. 1. The Volkswagen group already includes brands such as Audi, Volkswagen, Seat, Bugatti and Bentley.
Volkswagen is to buy the 50.1 per cent in Porsche's capital that it doesn't already hold from holding company Porsche SE for €4.46 billion plus one Volkswagen share.
Porsche failed in an attempt to take over VW in 2009. Volkswagen emerged on top but its takeover plans had been stalled.
News from © The Associated Press, 2012