VW may completely takeover Porsche

Europe's biggest automaker Volkswagen (VW) will likely complete its takeover of luxury car group Porsche this year after clearing key hurdles, according to a Der Spiegel report.

VW, which owns 49.9 per cent of Porsche, may buy the 50.1-per cent stake in the manufacturer of the iconic 911 car for 3.9 billion euros (US$5.0 billion) in 2012.

VW will avoid having to pay more than 1.0 billion euros in taxes for completing the deal before 2014 by creating a holding company to buy and maintain the stake in Porsche, according to the report.

VW would also meet Porsche's demands for independence by signing a contract giving the sports car maker control over its investments and models.

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