Porsche AG has agreed to become a shareholder in Varta AG, a German battery manufacturer, as part of a formal debt-restructuring agreement with lenders. The move injects new capital into a company facing financial strain amid challenges in the EV battery sector.
- Porsche AG invested €150 million in Varta AG as part of a debt-restructuring deal
- Varta converted €320 million in senior debt into equity, reducing financial leverage
- Porsche now holds 18% of Varta’s post-restructuring equity, making it the largest shareholder
- The agreement includes a long-term battery cell supply deal for Porsche’s EV models
- Varta reported a €210 million net loss in 2024 despite €480 million in revenue
- Varta’s stock rose 12% on the announcement, with broader DE30 index up 0.7%
Porsche AG has entered into a strategic equity agreement with Varta AG, securing a stake in the battery maker as part of a comprehensive debt restructuring plan. The transaction, finalized in early January 2026, includes a direct capital infusion of €150 million from Porsche, aimed at stabilizing Varta’s operations and supporting its transition to high-volume production of lithium-ion cells for electric vehicles. The restructuring follows months of negotiations between Varta and its creditor group, which includes Deutsche Bank and several institutional investors. The agreement allows Varta to convert €320 million in existing senior debt into equity, effectively reducing its leverage. Porsche’s investment represents approximately 18% of the company’s post-restructuring equity, making it the largest single shareholder. The deal also locks in a long-term supply agreement for battery cells, strengthening Porsche’s vertical integration in its EV supply chain. Varta, headquartered in Wiesbaden, has struggled since 2023 with declining margins, production delays, and increased competition from Asian manufacturers. Despite 2024 revenue of €480 million, the company reported a net loss of €210 million. The restructuring is expected to extend Varta’s runway to 2028, with operational turnaround targets tied to a 30% reduction in production costs by the end of 2027. The development has drawn attention from investors in the German industrial and clean energy sectors. Varta’s stock, trading under the ticker VART.F on XETRA, rose 12% on the announcement, while the broader DE30 index gained 0.7%. Market analysts view the move as a vote of confidence in Germany’s battery manufacturing ecosystem and may encourage further strategic investments in mid-sized industrial firms undergoing financial restructuring.