Rimac has announced its plans to merge with Bugatti Automobiles, forming a new company called Bugatti Rimac led by Mate Rimac.

As part of the deal, the newly-formed Rimac Group will be the major shareholder, with a 55% stake in the company. Mate Rimac, the CEO of the Croatian OEM, will retain his original shareholding in Rimac Group at 37%, with Porsche at 24%, Hyundai Motor Group at 12%, and other investors making up 27%. The development, production, and supply of battery systems, drivetrains, and other components will be separated into a new business called Rimac Technology – which will be 100% owned by the Rimac Group and ran by Mate Rimac. It will remain an independent company and work with many global car manufacturers.

Bugatti and Rimac will also continue as separate brands, retaining their existing production facilities and distribution channels. Bugatti Rimac represents the company that will develop the future of both Bugatti and Rimac vehicles by leveraging the resources and expertise of both companies in research and development, production, and other areas.

Rimac Group will continue to develop its own hypercars, as well as developing systems and technologies for several global OEMs. The company have said that these technologies can also be deployed in future Bugatti and Rimac models.

Initially, both brands will continue to operate independently – with Rimac Automobili retaining its current premises on the outskirts of Zagreb, Croatia and Bugatti continuing production at its factory in Molsheim, France.

In time, Bugatti Rimac’s global headquarters, along with Rimac Technology, will be situated at the recently announced Rimac Campus. The €200M campus is set to open in 2023, and will be the base for all research and development of Rimac and Bugatti’s future hypercars.