Mate Rimac wants to buy Porsche's stake in Bugatti
The founder of Rimac and the current head of Bugatti Rimac, Mate Rimac, stated that he wants to buy Porsche's 45% stake in the joint venture. If the deal goes through, he will gain full control over Bugatti.
What is known
Rimac and Bugatti joined forces in 2021 through a complex scheme: Porsche transferred control of Bugatti to Mate Rimac in exchange for increasing its stake in the Rimac Group. Currently, Rimac Group owns 55% of Bugatti Rimac, while Porsche owns the remaining 45%.
At the time of that deal, Mate Rimac personally owned 35% of Rimac Group, Porsche held 22%, Hyundai had 11%, and the remaining 32% belonged to small investors.
Structure of Bugatti Rimac at the time of company formation. Illustration: Rimac Automobili
New Deal
According to media reports, Mate Rimac made a preliminary offer to buy Porsche's 45% stake in Bugatti Rimac earlier this year, valuing the joint venture at over a billion euros (1.1 billion dollars). Now he has confirmed that he wants to gain full control with the help of an unspecified group of international investors and private equity funds.
“It's no secret that we are negotiating,” he told Bloomberg. “I just want to be able to make long-term decisions, make long-term investments, and act differently without explaining myself to 50 people. When you negotiate with a corporation, there are so many factors. It's families, many families. It's an emotional topic.”
Why Porsche might agree
The German sports car manufacturer is currently facing a drop in sales, has frozen the flagship K1 crossover project, and is rolling back some plans for electric vehicles. The company may decide that now is the right time to sell its stake in Bugatti Rimac and get the money.
Source: Bloomberg