Porsche is considering selling its subsidiary MHP: What's behind it?

Porsche is considering selling its subsidiary MHP: What's behind it?

Porsche is currently examining the sale of its subsidiary MHP, a renowned consulting and IT company based in Ludwigsburg. The estimated value of MHP is over one billion euros, which underlines the interest of potential buyers in the company. However, Porsche has not yet commented publicly on these sales considerations. According to information from Handelsblatt, the company has explored the market but has not yet found a buyer. In particular, Porsche is considering both a partial and a complete sale of MHP.

MHP CEO Federico Magno explained that the company is continually evaluating options for financing and changes in the shareholder structure. Despite the intention to sell, Porsche continues to view MHP as an important strategic partner whose close cooperation with the parent company will continue. MHP is also known as the namesake of the stadium in which VfB Stuttgart plays, which underlines the company's regional ties.

Porsche and MHP: future prospects

Porsche has a clear strategy that is intended to help MHP grow globally. The company plans to gradually take over all shares in MHP by January 2024 in order to ultimately hold 100 percent. Dr. Ralf Hofmann remains the CEO of MHP and currently holds 18.2 percent of the company's shares. With the acquisition, Porsche's goal is to maximize MHP's growth potential, as described in a report from MHP. In particular, the company sees digitalization as a decisive factor for the future.

The acquisition of MHP is part of Porsche's Strategy 2030, which defines ambitious growth goals. In a strong commitment to the opportunities of the IT consulting market, Lutz Meschke of Porsche AG reiterates MHP's expansion plans and focus on possible acquisitions. Since its founding in Karlsruhe-Ettlingen in 1996, MHP has developed from an SAP implementation partner into a leading management and IT consultancy that can look back on a successful company history spanning over 27 years.

In the midst of these strategic considerations, Porsche also has to deal with challenges in the automotive industry. Planned job cuts by 2029 and the need to adapt to changing market conditions present the company with significant challenges.