Porsche and VW in talks of merger

Carmaker Porsche says it has agreed to a merger with fellow German manufacturer Volkswagen (VW), a move that should unite 10 brands under one roof. ┬á After weeks of talks between the two firms' management, discussions will now take place between the two carmakers, VWÔÇÖs home state of Lower Saxony, and employee representatives. ┬á In January, Porsche announced it had increased its stake in Volkswagen to more than 50 percent, and said it planned to lift its stake in VW to 75 percent. However, even with a 75 percent stake it would not have been able to take complete control because under the "VW law" the state of Lower Saxony, which holds a 20 percent stake, can prevent strategic decisions. ┬á The state's president Christian Wulff said in a statement, "We are ready for discussions, which must be carried out quickly." He also said that the plan would include unspecified ÔÇ£capital measures.ÔÇØ┬á VW hailed the decision of the Porsche and Piech families, owners of Porsche group, to create the merger, and the format of the new group will be decided in the next four weeks. ┬á The luxury carmaker said in a statement that it wanted to see the "creation of an integrated car manufacturing group." ┬á "In the final structure 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured," a Porsche statement said. ┬á Nine brands in the group are owned by VW, and the other is the Porsche sports car brand.