Pirelli increases stake in Russian joint venture

From Rubber News comes news that Pirelli & C. S.p.A. is raising its equity in its Moscow-based joint venture, Pirelli Tyre Russia, from 50% to 65%. The venture operates two tire plants in Russia, located in Kirov and Voronezh. The news comes from Russian Technologies State Corp. (Rostec), one of the venture’s partners. Pirelli is paying an estimated $44 million for the 15% stake owned by GHP Group, a Russian investment group, according to Rostec. GHP retains an approximate 10% stake in the venture, while Rostec retains its 25% stake. Pirelli has options in the joint venture agreement to increase its stake further until 2017 by acquiring GHP’s residual stake and up to a 15 percent share from Rostec, Pirelli said in its half-year financial report. Rostec and Pirelli formed the joint venture in November 2008.