Volkswagen and Porsche Merger: Deal halted

Europe’s largest carmaker, Volkswagen has halted its deal talks with Porsche, as its smaller peer as well as its major shareholder was not ready to go ahead with the merger just yet. Both Volkswagen and Porsche had planned to meet on Monday, to complete its talks over the merger and for Porsche to increase its stake in VW by 75 percent.

Reuters reports that a VW spokesman said that Porsche had been lacking several fundamental conditions for these talks to even go ahead. It seems that Porsche has not got the correct strategy for this integration of these two German automakers to go ahead.

There is no certain date when Volkswagen and Porsche will sit down with each other to talk about the merger deal. Porsche has declined to comment on this latest development. Porsche already owns over 50 percent of VW, and this deal was supposed to increase the sports carmakers share to 75 percent. We have to wonder if it will ever go ahead now.