China’s CNCC Taking Over Italian Tire Maker, Pirelli
China’s CNCC in €7bn talks to take over Pirelli
China National Chemical Corporation (CNCC) (SS:601117) reached an agreement with holding company Camfin which controls Pirelli (OTCMKT:PPAMF) with the aim of undertaking a takeover of the Italian tiremaker, local reports said Sunday.
Shareholders in Camfin, who include Pirelli President and CEO Marco Tronchetti Provera, Russian Oil group Rosneft (MKTOTC:RFNTF) and Italian banks UniCredit (OTCMKT:UNCFF) and Intesa Sanpaolo (OTCMKT:INTSF), along with CNCC are set to establish a new holding company which will launch the takeover and likely delist Pirelli from the Milan stock exchange by Summer.
The agreement was confirmed in a statement released late Sunday, according to which Pirelli is expected to 2X its volumes in the industrial tire market.
Mr. Tronchetti Provera will remain CEO of the tiremaker until Y 2021.
“The agreement with CNCC represents a great opportunity for Pirelli,” Mr. Tronchetti Provera said. CNCC’s approach to business and strategic vision, he added, will ensure the development and stability of Pirelli.
Sunday’s agreement was the latest in a series of recent acquisitions by Chinese investors in Italy.
Pirelli makes the tires for Ferrari sports and racing cars.