The decision, announced this morning, will remove the hurdle which has prevented Porsche from gaining more control of the volume manufacturer. Porsche is already VW’s largest stakeholder, with 31% of VW Group, and wants to “significantly increase” its shareholding.
But the law had capped Porsche’s voting rights to 20% regardless of the size of the stake, the same as the German state of Lower Saxony, VW’s second largest shareholder.
Germany “failed to demonstrate why such a position has to be maintained in order to protect the general interests of minority shareholders,” the European Court of Justice ruled. The decision cannot be appealed.