Fiat Buys Back Ferrari Shares

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-03 21:17

Fiat is currently making huge profits. Now the Italian carmaker also wants to buy back a 29 percent stake in its subsidiary Ferrari.

Ferrari is returning to the parent company Fiat: The Turin dealership will buy back a 29 percent stake in its racing car subsidiary at the weekend, which is still owned by the Milan investment bank Mediobanca, Fiat boss Sergio Marchionne told the newspaper “Corriere della Sera” (Friday). The deal has a volume of 800 million euros. Fiat had sold the Ferrari share package almost four years ago at the height of its financial crisis.

Mediobanca then sold five percent of its shares to the Mubadala investment fund from Abu Dhabi. The aim of Fiat CEO Sergio Marchionne is to buy back this share as soon as possible, it said. Then 90 percent of all Ferrari shares would be in the hands of Fiat again: Another ten percent are owned by Piero Ferrari, the son of the company founder.

The company had recently presented a surprisingly good quarterly result and raised its forecast for the full year for the auto division and the group. Fiat Auto should now achieve a profit of 250 million euros in 2006 instead of the initially targeted 200 million euros. In the second quarter, the auto division posted a profit of 88 million euros after a loss of 88 million euros in the same period last year.