Brembo Buys 2.43% Stake In Pirelli Without Informing The Latter

Brembo has announced that it has acquired a small “long-term” stake in Pirelli, both directly and indirectly through its Nuova FourB parent company.

The 2.43% stake was reportedly purchased without Pirelli’s (or its shareholders’) knowledge. The tiremaker’s shares are down by roughly 40% so far this year, as reported by Autonews Europe.

“By adopting a long-term non-speculative approach, Brembo has autonomously decided to invest in Pirelli, whose history, brand, leading position and innovation-oriented approach makes it, just like Brembo, an excellent and particularly significant company in its industry.”

Pirelli tires are commonly used by Formula One racing teams, as well as a great deal of performance-oriented carmakers such as BMW or Audi. Brembo meanwhile makes brakes for the likes of Ferrari, Tesla, BMW and Mercedes, as well as several F1 teams.

Marco Tronchetti Provera, Pirelli CEO, stated that the arrival of new shareholders such as Brembo at a time of depressed market valuations serve to confirm that the Italian tiremaker has done a good job in recent years. The company’s own shareholders extended their agreement until 2023 last year, with the intention of raising their stakes by up to 1.5% each.

Pirelli is currently controlled by ChemChina and Silk Road Fund, jointly holding about 45.5%, whereas Italy’s Camfin holds about 10%.

Meanwhile, Brembo exec Matteo Tiraboschi said last year that his company was eyeing a significant acquisition, perhaps one even as big as Brembo itself. An approved loyalty share scheme would then allow its family owners to retain control, even if their stake would fall below 50% after an acquisition.