PIF and Pirelli Announce Joint Venture for Saudi Tyre Plant
Legal Advisors Abdulaziz Alajlan & Partners, in collaboration with Baker McKenzie offices in London, Milan, and Dubai, have provided legal counsel to the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, in a joint venture with global tyre manufacturer Pirelli Tyre. This venture marks the establishment of a joint company dedicated to the construction and operation of a cutting-edge tyre manufacturing facility in Saudi Arabia.
Senior legal consultant, Karim Nassar (pictured), expressed their pride in being chosen to provide legal counsel for this significant joint venture agreement. He commended PIF’s commitment to contributing to the Kingdom’s economic development, emphasizing the innovation behind this collaboration.
In this partnership, PIF will hold the majority stake of 75%, while Pirelli will possess the remaining 25% as a technology partner, offering technical, industrial, and commercial support for the plant’s development. The joint venture anticipates an estimated total investment of approximately USD 550 million.
Partner Phelim O’Doherty, another member of the advisory team, highlighted their delight in offering comprehensive services to ensure the successful conclusion of the transaction. This achievement underscores the commitment of the cross-border team to providing exceptional guidance based on their extensive global sector knowledge and market expertise.
The joint venture company is set to commence tyre manufacturing at its plant in 2026, with an expected annual production capacity of 3.5 million tyres. They will include high-quality products for passenger vehicles under the Pirelli brand, as well as a new local brand targeting the domestic and regional markets.
Senior legal consultant, Abdulrahman Alajlan, emphasized the pivotal role played by their diverse team in ensuring the deal’s success. Their contribution supports PIF’s ongoing expansion efforts in the Kingdom, marking a significant milestone in this pioneering endeavor.
The cross-border team comprised of Karim Nassar (Riyadh), Phelim O’Doherty (London), Yousef Bugaighis (Dubai), Alessandra Calabrese (Milan), Pietro Bernasconi (Milan), Lorenzo de Martinis (Milan), Sue McLean (London), Lorenza Mosna (Milan), James Parker and Jessica Steele (London).
For the Italian article click here
