Legal Advisors and Baker McKenzie assist the Public Investment Fund on its joint venture with Pirelli Tyre S.p.A

Legal Advisors Abdulaziz Alajlan & Partners alongside Baker McKenzie, London, Milan, and Dubai have advised the Public Investment Fund (PIF), the sovereign wealth fund of the Kingdom of Saudi Arabia, on a joint venture with Pirelli Tyre S.p.A, a leading global tyre manufacturer. The joint venture agreement involves the establishment of a joint venture company dedicated to construction and operation of a state-of-the-art tyre manufacturing plant in the Kingdom of Saudi Arabia.

Commenting on the transaction, Karim Nassar said, “We are immensely proud to have been entrusted by the PIF to provide legal counsel on this remarkable joint venture agreement. This collaboration is a testament to the innovative spirit and the enduring commitment of our client to further contributing to the economic development in the Kingdom.”

PIF will be the majority partner with a stake of 75 per cent, with the remaining 25 per cent held by Pirelli in the role of technology partner, also supporting the development of the plant through technical, industrial, and commercial assistance. The joint venture company will require an estimated total investment of around USD 550 million.

Phelim O’Doherty also stated, “We are extremely delighted to have leveraged our comprehensive service offerings to support our client successfully concluding this transaction. The collaborative effort within our cross-border team highlights our commitment to delivering exceptional guidance, built upon our deep global sector knowledge and outstanding market expertise.”

The joint venture company is expected to start tyre manufacturing at its plant in 2026 with an expected manufacturing capacity of 3.5 million tyres per year. The plant will manufacture high-quality tyres for passenger vehicles under the Pirelli brand as well as manufacture and market tyres under a new local brand targeting the domestic and regional market.

Abdulrahman Alajlan concluded, “The expertise and commitment of our diverse team played a pivotal role in ensuring the success of this pioneering deal. We are pleased to have played an integral role in this transaction supporting PIF’s continuous expansion efforts in the Kingdom.”

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).