By Shane McGinley
Gas-rich Gulf emirate backs the merger of German carmakers Porsche and Volkswagen
Qatar is to increase its capital in Porsche and has given its seal of approval to the luxury carmaker’s merger with fellow German manufacturer Volkswagen.
“The head of Qatar Holding has said he will take part,” a Qatar Holding spokesperson told newsier AFP, confirming the Gulf state’s sovereign wealth fund’s plans to participate in the capital increase in Porsche.
The spokesperson declined to specify the value of the investment in the luxury carmaker.
Qatar Holding owns a ten percent stake in Porsche and a 17 percent stake in Volkswagen, Europe’s biggest carmaker. The German manufacturers plan to merge by the end of the year.
"Qatar Holding considers the merger between Volkswagen and Porsche to be beneficial to all stakeholders and continues to support this initiative," a Qatar Holding source told DowJones.
Gas-rich Qatar has used its wealth fund to purchase a string of trophy assets around the world. The emirate’s portfolio includes luxury department store Harrods, purchased in 2010 for $2bn, a five percent stake in Banco Santander’s Brazilian unit and a stake in the London Stock Exchange.