VW was able to proceed with the transaction after reaching an agreement with German tax authorities, it said in an emailed statement. The price is based on an equity value of 3.88 billion euros and also includes what the Porsche holding company would have received in dividend payments and half of the forecast synergies from the transaction.

The two companies agreed to combine in 2009 after Porsche racked up more than 10 billion euros of debt in an unsuccessful attempt to take over Volkswagen. The two scrapped the plan for a full merger last year with the Porsche holding company, which owns 50.7 percent of VW’s common stock, because of lawsuits against Porsche in the U.S. and Germany.

The deal announced Wednesday allows VW to purchase Porsche’s automotive business without having to pay the taxes associated with exercising a put-call option it had to buy the stake. The deal will result in 320 million euros in additional synergies due to the earlier completion.

“We can now cooperate even more closely and jointly leverage new growth opportunities in the high-margin premium segment,” Chief Executive Officer Martin Winterkorn said in an em-mailed statement. “Combining their operating business will make Volkswagen and Porsche even stronger -- both financially and strategically -- going forward.”