Volkswagen, which already owned a 49.9% stake in Porsche, will buy the remaining 50.1% on August 1st. The deal is worth €4.46 billion ($5.66 billion).

The two parties had agreed in 2009 to merge by the end of 2011, but legal obstacles came in the way. Now that the road is clear, Volkswagen will inch closer to becoming the largest automaker in the world. The group already owns Bugatti, Bentley and Audi, among other brands.

''With Porsche, Audi and Bugatti, Volkswagen AG will now account for 40% of the global luxury car market,'' said Ferdinand Dudenhöffer, professor at the University of Duisburg-Essen.

The move will somewhat disappoint Porsche, which tried to take over Volkswagen in 2008 but ultimately failed. Still, Porsche is widely expected to benefit from the group's technologies and economies of scale.

Source: bbc.co.uk