Russia’s Rosneft signs deal to buy 50% in owner of 26% in Pirelli

May 27, 2014

Russian oil giant Rosneft has signed an agreement to buy 50% in the holding company which owns 26.19% in Italy’s Pirelli, from a consortium of UniCredit Bank, Bank Intesam, and Clessidra fund, ITAR-TASS reported on May 26. Rosneft reported this on May 24 following the St. Petersburg International Economic Forum.

The deal was based on the price of €12 per share, which implies that its total value may be estimated at €766 million. The deal is also subject to approval by regulators of Russia, Italy, and the EU.

Rosneft and Pirelli have also concluded a memorandum of understanding to consider synthetic rubber production in the Russian city of Nakhodka and supplies to Pirelli’s plants in the Asia-Pacific region. The projects may be implemented at production facilities of Rosneft’s Eastern Petrochemical Company.

The companies have also signed an agreement of understanding to expand trade and marketing cooperation by launching Pirelli point of sales within the retail chain of Rosneft. The companies will open 60 units in 2014-2015, and boost the number of Pirelli tire centers to 200 by 2019.

Copyright: ITAR-TASS, 2014