- Italy’s Move to Safeguard Pirelli’s Independence
- “Golden Power Procedure” and Strategic Business Protection
- US Secretary of State’s Visit Highlights Tensions
Italy has taken steps to prevent a Chinese state-owned company from acquiring tire manufacturing behemoth Pirelli.
The decision is part of the measures declared by the Italian government to safeguard the independence of Pirelli.
The chemical conglomerate controlled by Beijing, Sinochem, holds a 37% stake in the 151-year-old Milanese company Pirelli.
As the US secretary of state visits China, tensions between Beijing and the West have come into focus.
Pirelli announced in a statement to investors on Sunday that the Italian government had ruled that only Camfin, a company controlled by Pirelli’s CEO Marco Tronchetti Provera, could nominate candidates for the position of chief executive officer.
Pirelli said the government will study corporate governance changes.
In March, Sinochem informed the Italian government of its intention to renew and update an existing shareholder agreement.
The administration of Italian Prime Minister Giorgia Meloni examined the agreement by the so-called “Golden Power Procedure” rules, which are intended to safeguard businesses deemed strategically vital to the nation.
A group of investors, including ChemChina and Camfin, bought Pirelli for 7.1 billion euros (£6.1 billion; $7.8 billion) in 2015. Six years later, ChemChina and state-owned Sinochem merged. The Silk Road investment fund of the Chinese government also possesses a 9% stake in Pirelli.
US Secretary of State Antony Blinken is in Beijing on the last day of a rare visit to China by such a high-ranking official from Washington.
In recent years, relations between China and many Western nations have deteriorated over issues such as trade, Taiwan, and security, prompting Mr. Blinken’s visit.
Before his visit, there was little hope for a resolution of the numerous disputes between the world’s two largest economies, including Washington’s efforts to limit the development of China’s computer chip industry.
