Italy may impose sanctions on Chinese investor of Pirelli

Italy will decide by the end of September whether to impose sanctions on Chinese investor Pirelli over alleged breaches of requirements set by Rome to limit the influence of the Sinochem holding on the tire company's management, Reuters reports citing its sources.

The Italian government's investigation may exacerbate the differences between Pirelli, its main Italian shareholder Camfin, and Sinochem, as the first two companies claim that the significant participation of the Chinese side in the capital of the tire manufacturer creates risks for plans to expand its business in the US. Sinochem and Pirelli do not comment on the situation.

The government of Italian Prime Minister Giorgia Meloni was supposed to make a decision on sanctions against Sinochem by July 31, but extended the consideration period by 60 days, the agency's sources note.

Earlier, the Italian authorities ruled that Sinochem should not interfere with Pirelli's management, and in November last year, an investigation was launched to verify whether the presence of Chinese managers on the company's board of directors violates these restrictions.

Sinochem owns a 37% stake in Pirelli, while Camfin, controlled by Marco Tronchetti Provera, who headed the tire company for three decades, has a 27.4% stake. In June, it was reported that Tronchetti Provera, who currently holds the post of Executive Vice Chairman of the Pirelli Board of Directors, is lobbying the government to take further measures to limit the influence of Chinese investors on the company's management.

Photo: tyre-trends.com