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The Saudi sovereign wealth fund has agreed to buy a stake in Italian luxury car maker Horacio Pagani, the latest indication that the oil-rich kingdom is increasingly interested in the auto industry, according to Bloomberg.
The Saudi sovereign fund’s investment is part of a long-term strategic partnership with the nearby Italian company, but the Pagani family will retain full control of the company, despite the fund joining minority shareholders Italians Nicola Volpi and Emilio Petroni, according to a statement.
The Public Investment Fund will acquire 30% of the shares of Horacio Pagani, according to a source familiar with the matter, who requested anonymity.
Pagani, headquartered near Modena in northern Italy, was founded by Italian-Argentinian businessman Horacio Bagni in 1992.
He described the CEO and Chairman of the Saudi Fund as the “ideal partner” to continue to develop a “distinguished brand in the hybrid vehicle sector and support its expansion strategy”.
And Bloomberg reported in April that the Saudi sovereign wealth fund had appointed advisers, including the Boston Consulting Group, to explore the creation of a local electric car maker.
The fund has been active in electric cars for several years, having acquired a small stake in Tesla, before investing in 2018 in Lucid Group Inc.
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