Volkswagen likely to complete Porsche takeover this year: Report

Europe's biggest automaker Volkswagen (VW) is likely to complete its takeover of luxury car group Porsche this year, after clearing key hurdles, according to a German media report.

News weekly Der Spiegel in its upcoming issue says that VW, which owns 49.9 per cent of Porsche, may buy the remaining 50.1 per cent stake in the manufacturer of the iconic 911 car for $5.0 billion in 2012.

The report cited unnamed VW executives.

Porsche has built up massive debts as it looked to seal a tie-up with VW and that two previous obstacles now look surmountable.

VW will avoid having to pay more than $1.29 billion in taxes for completing the deal before 2014 by creating a holding company to buy and maintain the stake in Porsche, according to the report.

VW would also meet Porsche's demands for independence by signing a contract giving the sports car maker control over its investments and models, the report said.

Porsche spectacularly tried to take over VW in 2008 but the attempt failed and the luxury car maker was in turn saved by Volkswagen.

A VW spokesman declined to comment on the details of the report.

"But in principle, we aim to complete the transaction as quickly as possible," he said.