BBC News is reporting that German carmaker Porsche has agreed a merger with fellow manufacturer Volkswagen (VW) after weeks of talks between the management of the two companies .
The luxury carmaker said in a statement that it wanted to see the “creation of an integrated car manufacturing group”.
VW hailed the decision of the Porsche and Piech families, owners of Porsche group, to create the merger.
It means a Porsche takeover of VW will not happen. The format of the new group will be decided in the next four weeks.
Talks will now take place between the two carmakers, VW’s home state of Lower Saxony, and employee representatives.
The state’s president Christian Wulff said in a statement: “We are ready for discussions, which must be carried out quickly.”