The Mubadala Development Company, which is wholly owned by the Abu Dhabi government, has bought five percent of Ferrari. The company announced on Wednesday that it had bought the shares for 114 million Euros ($138 million).
Chairman of the Abu Dhabi Department of Planning and Economy, Sheikh Hamid Bin Zayyid Al Nahyan, said, “This is a sound financial and strategic investment on numerous levels. It continues our track record of being involved with premier global companies and brands who are the leaders in their fields.”
“Importantly, it also meets our own investment objectives that include the creation of blue chip commercial partnerships that will directly and indirectly benefit the Abu Dhabi economy”, he added.
“This is the first time that we, Fiat, have welcomed a non-financial institution to become a Ferrari shareholder. The key benefit of extending our shareholder base beyond traditional financial institutions will be a new opportunity for our development”, said Luca di Montezemolo, chairman of both Ferrari and Fiat. “We know Mubadala is committed to being an extremely reliable, stable shareholder and partner to existing shareholders,” he added.
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“Moreover, the strategic alliance with Mubadala, and therefore the Government of Abu Dhabi, is set to bring us compelling and dynamic new strategies especially in the Middle East and North African markets. Our initial areas for consideration will range from the creation and development of road and racing car testing initiatives, along with professional driving schools through to the leveraging of opportunities around brand experiences and merchandising.”
“This deal further underscores our strategy of involvement in profitable relationships with premiere global companies and brands,” said CEO of Mubadala Khaldun Khalifa Al-Mubarak. For both Mubadala and Ferrari, the primary business objective is to create long-term, commercially viable opportunities that maximize all potential aspects of the strategic alliance. “I am very much looking forward to seeing the potential we have at hand realized,” Al-Mubarak added.