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Brembo bought a stake in Pirelli

Brembo bought a stake in Pirelli

Since you read the articles on this site, you probably know and respect names like Brembo and Pirelli. It is not uncommon for the products of both companies to be found on the same machine – be it a motorbike or a car – and work together to provide a safe and reliable ride. Therefore, the information that Brembo has acquired a 2.43 percent stake in Pirelli, describing this deal as “non-speculative long-term investment”, is interesting news for everyone interested in the transport industry.

In general, conversations about promotions are extremely rarely interesting, but in our coronavirus time, thanks for that. It is worth noting that Pirelli shares, like many other iconic companies, are now trading at extremely low prices. According to Reuters, their prices are now at their lowest levels since Pirelli returned to stock exchanges in 2017.

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And here’s what’s really interesting: in 2019, Brembo Deputy CEO Matteo Tiraboski announced that the company was considering acquiring another company. “considerable size”operating in the market of motor vehicles. So far, we can only assume that it was Pirelli that was chosen as “goals” investment activity of Brembo, but you shouldn’t be surprised if this is the case.

The first news from Brembo about the acquisition of a stake in Pirelli came on March 31, 2020. A day later, Pirelli chief executive Marco Tronchetti Provera denied rumors that a merger or acquisition was expected.

We are not planning a merger with Brembo. They have made an investment, and we are happy about it, ”Tronchetti Provera told Reuters.

But the information that Tronchetti Provera was not aware of Brembo’s plans to acquire a stake in his company only fueled speculation about Brembo’s next move.

I only found out about Brembo’s actions when everything had already happened. But I do not see any threat in this: this deal only speaks of high confidence in us on their part, – added Tronchetti Provera.

Analysts are expected to build a variety of hypotheses about the real meaning of this transaction. And Brembo, in turn, does not provide any explanations about the motives for this transaction. So far, nothing special has happened as a result of it, but we will follow the development of this story – and we will tell you.

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