Audi has long been associated with Volkswagen, with the Volkswagen first acquiring the then Auto Union from Daimler back in 1964. Initially securing a 50% stake in the business, that figure has since grown to 99.64% in the years since, but Volkswagen does not technically fully own Audi. However, that is all set to change following Audi’s 131th annual general meeting recently.

The meeting saw a vote on a so-called squeeze-out under stock corporation law, which will result in the transfer all Audi shares owned by remaining shareholders to Volkswagen. “The Volkswagen Group is now consolidating all its strength. We are positioning ourselves competitively throughout the Volkswagen Group and lifting Group synergies and economies of scale to a new level,” said Markus Duesmann, chairman of the board of management of Audi AG.

As a result of the move, Volkswagen will own 100% of Audi, with Duesmann being moved to the position of Group research and development lead, as well as being responsible for making the new Car.Software organisation. The latter serves to increase the proportion of in-house software development at the Volkswagen Group from 10% today to 60% by 2025.

Volkswagen had previously submitted a share transfer request on February 28, 2020 and specified the details of that transfer request on June 16, 2020. The minority shareholders will be handsomely compensated by this buyout, as Volkswagen will pay 1,551.53 euros (RM7,702.18) per Audi share.

The company says that in the relevant three-month period before the announcement of the squeeze-out request, the average share price was 813.15 euros (RM4,036.23) per Audi share. This means that the fixed cash compensation paid to minority shareholders is approximately 90% above that average price.