Italian tire manufacturer Pirelli has taken steps to prevent a Chinese state-owned company from gaining control of the renowned brand. Pirelli issued a statement to its investors, revealing that the Italian government had decided that only Camfin, a company controlled by Pirelli’s CEO Marco Tronchetti Provera, could nominate candidates for the position of chief executive.
Since 2015, Chinese chemical giant Sinochem has been the largest investor in Pirelli, holding a 37% stake in the 151-year-old Milan-based company after its listing in 2017. Pirelli was sold for $7.8 billion in 2015 to a group of investors, including ChemChina and Camfin. However, six years later, ChemChina merged with the state-owned Sinochem. Additionally, the Chinese government holds a 9% stake in Pirelli through its Silk Road investment fund.
The recent developments come after Sinochem informed the Italian government earlier this year of its intention to renew and update an existing shareholder pact. In response, Italian Prime Minister Giorgia Meloni invoked the “Golden Power Procedure” rules, which aim to protect strategically important businesses in the country. Meloni’s office stated that the measures were designed to safeguard Pirelli’s independence and management.
Italy’s involvement in China’s Belt and Road Initiative (BRI) has raised concerns since its participation in 2019, making it the only G7 country to join. Critics argue that Italy may have exposed itself to potential risks by granting China access to sensitive technologies and vital infrastructure. However, Meloni has hinted at Italy’s intention to exit the BRI, and her government’s efforts to limit the influence of a Chinese company in an iconic Italian brand may be seen as a testament to that resolve.
As China’s relationship with Western countries has faced challenges in recent times, Italy, like other European nations, recognizes the need to maintain trade and business ties with China while seeking to mitigate Chinese influence over strategic assets. Pirelli, founded in 1872, is a renowned Italian company specializing in high-end tires for luxury car manufacturers such as Ferrari, Porsche, and BMW, and it serves as the sole supplier of Formula One cars.
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