Due to a technicality, Porsche’s takeover of Volkswagen will be delayed by at least a month, a new report finds. European Union rules state that a company must be able to show an agreement or public bid for a majority share in a company before the European Commission will decide on such a matter.
To comply with the rule, Porsche will increase its stake in VW from 30.6 percent to 35.5 percent, according to Automotive News. The German automaker will then have to refile its proposal with the Commission.
Porsche submitted its original plans last Wednesday, but had to withdraw them due to the technicality. Porsche must now wait until July 23.
Not to be one to give up control easily, the state of Lower Saxony – VW’s largest current share holder – upped its stake in VW by 500,000 shares.