Case study on Merger

In January, Porsche announced it had increased its stake in Volkswagen to more than 50%, and said it planned to lift its stake in VW to 75%.

However, even with a 75% 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% stake, can block strategic decisions.
Stock markets had closed before the announcement, with Porsche shares up 1.2%, and VW's down slightly, by 0.4%. Now they have changed their mind and recently Carmaker Porsche agreed a merger with fellow German manufacturer Volkswagen (VW) after weeks of talks between the two firms' management.

Find out

* the difference between a merger and a takeover.
* Problems and benefits due to merger.
* Their effect on corporate cultures of the merging businesses. The synergies created because of mergers.

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