Earlier this year, Brembo acquired what was described as a “small long-term” stake in Pirelli through its Nuova FourB parent company. The small 2.43 percent stake was purchased without the knowledge of Pirelli or its shareholders.
Now, the Italian brake manufacturer has raised its stake from 2.43% to nearly 5 percent (4.99 to be precise), although that’s as high as they’ll go, Autonews Europe reports.
Brembo’s executive deputy chairman Matteo Tiraboschi told Reuters that his company isn’t planning to further increase its holding at the moment and doesn’t want to play any role in Pirelli’s governance.
Read Also: Pirelli Currently Has No Intention Of Merging With Brembo
“We have made an investment, which we had decided on before the COVID-19 outbreak, in a company that we know and greatly respect, with a market positioning which is very similar to our own,” Tiraboschi stated.
While Pirelli have previously stated that they have no intention of merging with anyone, this surprise move will surely raise speculation regarding the future integration of the two groups. Together, they could create a giant in terms of car parts supply.
Brembo makes brakes for car manufacturers such as Ferrari, Tesla and several Formula One teams, while Pirelli tires are used in Formula One, as well as by brands such as BMW, Audi and others.
It will be interesting to see what happens in the years to come, especially since Pirelli stakeholders ChemChina and the Silk Road Fund, which jointly hold a 46 percent stake, will see their shareholder agreement expire in 2023 to Camfin, an investment vehicle of Pirelli CEO Marco Tronchetti Provera, who owns a stake of just over 10 percent.
