POAHY Porsche Automobile Holding SE (PK)

FRANKFURT--German financial watchdog Bafin said Wednesday it won't conduct a formal probe into whether Volkswagen AG (VOW.XE) met disclosure requirements and stock market rules as part of its takeover of Porsche Automobil Holding SE (PAH3.XE).

In July, VW said it would take over the 50.1% stake in the sportscar unit of Porsche it didn't already own.

At the time, Bafin said it was looking for evidence if disclosure rules had been breached, and undertook a preliminary investigation. A Bafin spokesman had said if any evidence was found the next step would be a formal probe into the matter.

Volkswagen and Porsche negotiated a deal early July to fully integrate Porsche's sportscar business into VW's stable of brands for 4.46 billion euros ($5.70 billion) in cash plus one voting share. The companies reached an agreement on speeding up the deal to reap more cost synergies faster.

Write to Nico Schmidt and Christoph Rauwald at nico.schmidt@dowjones.com

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