9 Jul 2012

VW - Porsche deal

7:28 am on 9 July 2012

Volkswagen has agreed to buy the remaining half of Porsche for $US5.6 billion.

The deal is likely to reduce costs and boost VW's earnings, while hastening its aim to be the biggest car maker in the world.

It also brings to an end a protracted takeover struggle which has sparked family feuds and investor lawsuits, and allow VW to avoid a $US1 billion tax bill.