Freshfields Bruckhaus Deringer has taken the lead advisory role for Porsche as it moves to acquire a majority stake in Volkswagen (VW).

Porsche, which already owns just under 31% of its fellow German automotive giant, plans to up its stake to more than 50%, subject to regulatory approval, with the additional shares currently valued at around €10bn (£7.7bn).

The Freshfields team is being led by Frankfurt-based corporate partner Christoph von Bulow and includes fellow corporate partner Thomas Bucker, competition partner Frank Montag and finance partner Gunnar Schuster.

Commenting on the magic circle firm's role, von Bulow said: "This is a landmark deal and from our point of view is it really exciting to contribute on the creation of what will be one of the world-leading automobile alliances."

Last year, Freshfields advised Porsche as it upped its stake in VW to 30.6%, as well as acting on the formation of Porsche Automobil Holding – a uniquely-structured vehicle created to keep the two brands separate and prevent VW from swallowing Porsche.

Clifford Chance advised VW on that occasion, although it is thought that VW has yet to appoint formal counsel for the latest deal.

The deal, for which details of the financing have yet to be confirmed, is not being seen as a precursor to a full merger between Porsche and VW.