Qatar acquire 17% Porsche stake

DOHA: Qatar Holding has announced it will acquire a 17 percent stake in Volkswagen AG, which is merging with Porsche, in a deal that will exceed $10 billion.

This comes after the Porsche and Piech families said it will sell a 10 percent stake of their shares to the Gulf company.

In a statement released late Friday, Qatar Holding said it will now be the third largest shareholder in VW, after Porsche and Lower Saxony.

The purchase follows the UAE's Aabar Investment acquisition in March of a 10 percent stake of Daimler AG, famed for its Mercedes-Benz brand, indicating continuing Gulf interest in the European automotive sector despite the economic downturn.

The statement says Porsche will also establish research facilities in Doha as part of the deal.