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VW finalises Proton buyout
By Yoann Besnard on 3 August 2007 | 
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Despite its struggle to survive, Proton and its owners, the Malaysian state, are handling difficult negotiations over a buyout, with Volkwagen the only bidder. According to some Malaysian newspapers, Proton, whose situation is becoming worse by the day, is now a bit more conciliatory towards Volkswagen.
The biggest stumbling block was the stake demanded by Volkswagen. The German carmaker asked for 51% while Proton refused to offer more than 49%. Finally, a new company will be set up with 51% owned by the German carmaker. This new company will hold the Proton assets. In exchange, Volkswagen will bring its technical knowledge in the form of platforms and engines for future models. It will also take charge of the Proton distribution network worldwide, while Proton will keep its network in Malaysia.
