Porsche Deal Creates a Bonanza for Bankers

The merger of Porsche and Volkswagen has not one that is exactly what people would call full of acceptance and without its share of problems and arguments. Its been quite the mess, however its about to pay off for those who have made an investment into the deal.

With preliminary details of a deal just around the corner, the meld between the legendary car and vans German auto maker, has many of its investors salivating and its becoming increasingly clear what the deal will yield incredible returns for those banks lucky enough to land a role advising on it. VW not being content with selling its old line up was been making announcements of huge stakes in other countries like China and America. Hoping their label becomes a standard for all new cars and used vans, as well as a fleet if new innovative vehicles fresh off the lines.

For the purposes of the league tables that rank investment banks on the dollar value of deals advised on, the deal has three parts, according to Dealogic: Volkswagen’s €3.3 billion ($4.7 billion) purchase of a 42% stake in Porsche’s operating unit; Qatar’s purchase of Volkswagen options from Porsche valued at €5 billion; and the emirate’s purchase of a stake in Porsche, which could be valued at another €5 billion if finalized.

Thus far the banks have only estimated the preliminary numbers and returns for the overall deal, there is plenty of league-table credit to go around, not to mention the prestige and bragging rights, and the hearty stream of fees that is sure to flow from such a complicated and time-consuming undertaking.