Pirelli shares rise modestly following the strengthening of the MTP and a 1 billion investment in the US
Marco Tronchetti Provera has increased his stake in Bicocca to 29.9 per cent. Plans to expand the plant in Georgia have been confirmed, which will increase production capacity to around 6 million tyres by 2033
(Il Sole 24 Ore Radiocor) - Pirelli shares rose slightly today, following the approval of a €1 billion investment plan in the US, followed by the announcement that Marco Tronchetti Provera had increased his stake in the group. The chain of control headed by MTP has risen to 29.9 per cent of the Bicocca-based group’s share capital following the acquisition by Camfin Alternative Asset of a further 3.34 per cent stake. The transaction thus consolidates the role of Camfin and Marco Tronchetti Provera & C. spa, who sit at the top of Pirelli’s Italian shareholder structure, ahead of the Chinese group Sinochem (20 per cent) and Lumina Crown (14.4 per cent), the vehicle of Czech billionaire Michal Strnad, which joined the group this summer. The purchase was carried out in accordance with the resolution passed two years ago by the boards of directors of MTP, Camfin, Camfin Alternative Assets and Longmarch Holding, authorising acquisitions up to a maximum total stake of 29.9 per cent in Pirelli, just below the takeover threshold.
On the industrial front, the tyre group has confirmed its investment plan in the US, first announced at the end of June, which involves an investment of one billion euros between 2027 and 2033. The investment involves the expansion of the Rome plant in Georgia, which will increase production capacity from the current 500,000 tyres – including those featuring Cyber Tyre connected technology – to around 6 million by 2033, creating 1,000 new jobs. The project – as announced by the group – will have no impact on the targets for 2026. For the period 2027–2033, the ratio of capital expenditure (capex) to revenue is expected to remain broadly in line with previous periods, whilst maintaining the ability to generate cash flow. According to analysts at Banca Akros, ‘the news indicates that changes in governance are helping to unlock potential commercial and industrial benefits in the US market and support the company’s long-term growth in the high-value tyre segment, whilst also helping to reduce geopolitical, tariff and supply-chain risks’. Akros confirms its ‘Accumulate’ rating with a target price of 7 euros. Equita estimates that the project, once fully operational in 2033, could generate additional turnover of 600 million (+9 per cent compared with current turnover) with margins above the group average. The impact on the income statement “is, however, spread over time, as it does not alter the 2026–27 figures and will begin to materialise gradually from 2028 onwards,” note the analysts at the securities firm, who confirm their ‘Hold’ recommendation and a target price of 6.7 euros. As for Intermonte (‘Outperform’ and a target price of €7.60), the main features of the plan and the figures announced “are broadly in line with expectations”. The analysts welcome the investment, considering it “consistent with the growth opportunities offered by the US High-Value market, the largest globally, and in which Pirelli’s market share remains lower than in Europe, creating an opportunity for growth”.
