Jun 20, 2023

Italy’s Government Acts to Curb Chinese Influence on Pirelli

Italy’s government said on Friday it had taken steps to limit the influence of China’s Sinochem (600500.SS) on tyremaker Pirelli (PIRC.MI), including a mandatory qualified majority for strategic decisions made by the company’s board.

Rome’s decision comes after Sinochem, Pirelli’s largest shareholder with a 37% stake, notified the Italian government in March of plans to update an existing shareholder pact with Camfin, the vehicle of Pirelli CEO Marco Tronchetti Provera.

Prime Minister Giorgia Meloni’s administration scrutinised the pact under “Golden Power” rules aimed at protecting assets deemed strategic for the country, at a time when relations between China and Western countries have entered a tenser phase. …

Source: Reuters

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