Uber gives green light for sale of stake

 Porsche confirmed last week it would increase its stake in Volkswagen Group beyond the 50% mark and thus gain greater control of the company and all its subsidiary brands, and now U.S. antitrust authorities have given their approval for the deal. The Federal Trade Commission placed the deal on a list of approved mergers, allowing Porsche to take a step further in gaining greater control of one of the world’s biggest carmakers.
There remains fears that sports car programs from Audi, Bentley and Bugatti that could potentially compete with Porsche’s own sports models could be canceled once the Stuttgart-based carmaker takes control, reports Automotive News. The German government is also fearful that greater control by Porsche could see thousands of VW workers lose their job.

In response to Porsche’s takeover announcement, the German government approved a revised version of its 48-year old VW Law, which mandates that any major strategic decisions within VW would still have to be approved by just over 80% of shareholders. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the German state of Lower Saxony, which still holds 20% of VW.

source: AFP