FT: Rome Aims to Remove Sinochem from Pirelli Shareholders

Pirelli and the Italian government are exploring new ways to terminate the participation of the Chinese state-owned company Sinochem in the capital of the tire manufacturer amid pressure from the US, the Financial Times reports, citing its sources.

Earlier, the main Italian investor in Pirelli, Camfin, had expressed concerns that the presence of Sinochem among the company's shareholders was hindering plans to expand its presence in the US, as Washington introduces new restrictions on the use of Chinese technology in the automotive sector.

According to the FT, Rome is now considering a new "intervention" as a ban by Washington on the use of Chinese-made hardware and software in cars in the US market is set to come into force in March. Pirelli is affected because the company produces "smart" tires that can collect and transmit data in real-time.

It is also reported that in recent months, US officials have been pressuring the Italian government to limit Sinochem's influence, and Pirelli has offered the Chinese shareholder several options, including the sale of its stake. Last month, Sinochem appointed BNP Paribas as its representative, and the financial conglomerate is now acting as a consultant in the process of exploring options for selling shares.

Reuters sources reported last year that Sinochem was willing to consider offers to sell its stake in Pirelli on condition that the shares would be sold at a price above their nominal value.

Sinochem is the largest shareholder of Pirelli, with a stake of 34.1%.