For some time, Volkswagen has owned 99.64-percent of Audi AG, which is virtually all of it. However, that apparently wasn’t enough for the suits in Wolfsburg, as Volkswagen AG has just bought the remaining shares of Audi at a 48-percent premium.
So what did that final .36-percent of Audi AG cost Volkswagen? Well, it wasn’t cheap — $267 million.
“Volkswagen AG announced and specified that it has set the cash settlement to be paid to the minority shareholders in return for the transfer of their shares at 1,551.53 euros per Audi AG share,” Audi said in a recent statement.
Admittedly, Volkswagen has that sort of money to burn but it still seems like a lot of cash for less than half a percent. However, now that it’s done, the Volkswagen Group owns 100-percent of Audi AG. So the four-ringed company is now wholly owned by VW, without even the tiniest shred of financial autonomy.
The deal isn’t finalized just yet and the money won’t be transferred over until the next general meeting, which will happen sometime in either July or August.
What does this mean for Audi? Honestly, we don’t think much. Volkswagen essentially already owned the entire company anyway. It’s not as if a third of a percent is going to make much of a difference. However, this does mean that the Volkswagen Group gets that last final bit of profits moving forward. Considering that Audi is the VW Group’s most profitable brand, that could add up to a lot.
Volkswagen and Audi are going to be very busy these next few years, developing all-new electric cars and autonomous technology. Cars like the Audi e-tron GT and Q4 e-tron will be big splashes in the market. So maybe that last tiny bit of the profit that Volkswagen wouldn’t have otherwise gotten is what the German giant was after.
[Source: Automotive News Europe]