Rosneft buys stake in Pirelli in $695M deal

|About: Rosneft Oil Company OJSC (RNFTF)|By:, SA News Editor

Rosneft (RNFTF) agrees to acquire a large indirect stake in Italian tire maker Pirelli (PPAMF) in a deal worth ~€500M ($695M).

Rosneft will buy 50% of a new holding company that owns 26.2% of Pirelli, making it Pirelli's largest shareholder, although not a controlling one.

Rosneft's entry into Pirelli's shareholding base helps dilute financial shareholders but stabilizes the ownership of the company with an important new industrial investor.