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BRE - Freni Brembo SpA News Story

€9.75 0.5  4.8%

Last Trade - 23/10/20

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £2.72bn
Enterprise Value £3.29bn
Revenue £2.34bn
Position in Universe 75th / 713

UPDATE 1-Italy's Brembo raises stake in Pirelli to 4.99%, says ends purchases

Wed 29th July, 2020 2:50pm
(Adds context, details, changes headline)
    MILAN, July 29 (Reuters) - Italian brake maker Brembo
 BRBI.MI  said on Wednesday it had increased its stake in
tyremaker Pirelli  PIRC.MI  to 4.99% and added it had completed
the acquisition process, without giving further details.
    The stake is held both directly and indirectly through its
Nuova FourB parent company, Brembo said.
    Brembo, which makes brakes for automakers including Ferrari
 RACE.MI  and Tesla  TSLA.O  as well as several Formula One
teams, in March announced it had bought a 2.43% stake in Pirelli
with "a non-speculative, long-term approach". 
    The surprise move had raised speculation it could be the
first step towards a future integration of the two groups - both
focused on premium market segments - to create an Italian
heavyweight in car parts supply, as the industry faces the
challenges of the transition to electric mobility.  urn:newsml:reuters.com:*:nL8N2BO7PU 
    Pirelli, whose tyres are used by Formula One racing teams
and automakers such as BMW  BMWG.DE  and Audi  NSUG.DE , was not
immediately available for comment.
    Pirelli is controlled by China's ChemChina and Silk Road
Fund, which jointly hold about 46% and are linked by a
shareholder agreement expiring in 2023 to Camfin, the investment
vehicle of Pirelli Chief Eexecutive Marco Tronchetti Porvera,
which owns a stake just above 10%.
    Tronchetti Porvera has said there were no plans for a merger
with Brembo and moved on to bolster his influence over the
Italian tyremaker with the help of a Chinese partner.
 urn:newsml:reuters.com:*:nL8N2BP3MF  urn:newsml:reuters.com:*:nL8N2CV6ZT
    Camfin in May agreed with China's Niu family to create a
joint venture that could allow Camfin to control an 18% stake in
Pirelli.
    
    

 (Reporting by Giulio Piovaccari; editing by James Mackenzie and
Emelia Sithole-Matarise)
 ((giulio.piovaccari@thomsonreuters.com; +39 02 6612 9743;
Reuters Messaging:
giulio.piovaccari.thomsonreuters.com@reuters.net))
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