Rimac keen to buy Porsche's stake in Bugatti

Rimac, the Croatian hypercar brand, is looking to take full control of Bugatti by buying out Porsche’s stake in the storied supercar maker.

Mate Rimac, founder of the eponymous electric hypercar brand and CEO of the Bugatti Rimac holding company, told Bloomberg “it’s no secret that we are in discussions” with Porsche.

Mr Rimac said he wanted to “make long-term decisions, to make long-term investments and to do things in a different way, without having to explain to 50 people”.

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The ownership of the Bugatti and Rimac brands is a little complicated. The two brands are currently owned by a holding firm, creatively christened Bugatti Rimac.

Porsche has a 45 per cent stake in Bugatti Rimac, with the Rimac Group owning the rest. As part of the 2021 deal that saw Volkswagen Group divest Bugatti to Porsche and Rimac, Porsche upped its stake in the Rimac Group to 24 per cent. The other major shareholders in the Rimac Group are Hyundai (12 per cent), and Mate Rimac (34 per cent).

According to Bloomberg, Rimac offered Porsche at least €450 million (A$815 million) for its stake in Bugatti Rimac back in April.

Although Mr Rimac wants to have a deal done by 2026, it’s unclear if it will happen. He also claims to have unnamed international investors and private equity firms backing his takeover bid.

“When you negotiate with a corporation, there are so many factors,” Mr Rimac cautioned. “It’s families, it’s multiple families. It’s an emotional topic.”

The powerful Porsche-Piëch family — through their holding company Porsche SE — own significant stakes in both the Volkswagen Group and Porsche AG, the automaker. In turn Volkswagen Group owns 75 per cent of Porsche AG, the automaker.

While Porsche may not have been previously receptive to Rimac’s overtures for Bugatti, it’s once class-leading profit margins have shrunk dramatically of late as electric vehicle sales have not taken off as expected.

The company has recently recalibrated its EV ambitions, fast tracking a new petrol-powered SUV to sit alongside the EV-only Macan, cancelling its three-row electric SUV in favour of a new petrol model, and adding top-end petrol engine options to the previously EV-only next-generation 718 Boxster and Cayman.

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