IP/08/1201

Brussels, 23 July 2008

Mergers: Commission approves proposed

acquisition of Volkswagen by Porsche

The European Commission has cleared under the EU Merger Regulation the
proposed acquisition of Volkswagen of Germany by the German company
Porsche. After examining the operation, the Commission concluded that the
transaction would not significantly impede effective competition in the
European Economic Area (EEA) or any substantial part of it.

Porsche develops, manufactures, markets and sells passenger cars, in particular

sports cars and sports utility vehicles (SUVs). Porsche Holding is mainly active in the
wholesale and retail distribution of passenger cars and spare parts in several
countries in the EEA. Besides distributing passenger cars of the Porsche brand, it has
also been active in the wholesale and retail distribution of Volkswagen's car brands in
a number of countries for several years. Porsche Holding is also active in the
wholesale and retail distribution of other manufacturers' car brands in several Member
States.
Volkswagen, one of the largest car manufacturers worldwide, develops,
manufactures, markets and sells passenger cars and light commercial vehicles,
including spare parts and accessories. The company also distributes vehicles. The
Volkswagen Group includes the vehicle brands Volkswagen, Audi, Seat, Skoda,
Bentley, Lamborghini and Bugatti.
Porsche and Volkswagen have been cooperating for many years, for instance in the
development of sports utility vehicles (SUVs). Porsche is already the largest
shareholder in Volkswagen. In June 2008, Porsche entered into a share purchase
agreement to acquire an additional share of 4.92% of the voting capital in
Volkswagen. After the transaction, Porsche will be in a position to exercise de facto
control over Volkswagen.
While Volkswagen is active within a wide range of different types of passenger cars
and commercial vehicles, Porsche is focusing on sports cars and SUVs. The
Commission’s examination of the transaction showed that horizontal overlaps
between Volkswagen and Porsche are limited and that, for all car segments
concerned, Porsche will continue to face several strong, effective competitors with
significant market shares. The Commission also considered potential effects of the
merger on the markets for the manufacture and supply of spare parts and on
distribution markets but concluded that the transaction would not lead to any negative
effects on these markets.

More information on the case will be available at:

http://ec.europa.eu/comm/competition/mergers/cases/index/m101.html - m_5250