MILAN, Italy (Aug. 25, 2008) — Pirelli Tyre S.p.A. has bought minority shareholdings in its two Turkish subsidiaries, gaining full control of its steel cord unit there and increasing the stake in its tire company there to 95.4 percent.
Pirelli acquired the stakes from Turkey's Turkiye Is Bankasi A.S. for $64 million. It said the transaction strengthens its position in a strategic country in terms of production, sales and logistics.
Specifically, Pirelli bought a 25.8-percent stake in Pirelli Turk Lastikleri A.S., the 46-year-old car and commercial vehicle tire manufacturing and sales company, and a 48-percent stake in Celikord A.S., the steel cord manufacturing and sales unit. Under the transaction, Pirelli also purchased from other shareholders a further 1-percent stake in Celikord.