A Chinese investor has lost control of Pirelli
Pirelli announced that, according to the new resolution of the board of directors, it is no longer controlled by the Chinese state-owned holding company Sinochem, which should facilitate the company's expansion of business in the USA.
Sinochem is the largest shareholder of Pirelli with a 37% stake, and it was previously reported that investors had disagreements over the management of the company, as Camfin — an Italian structure that owns the second-largest package of shares of the tire manufacturer — believed that the Chinese side was hindering the achievement of goals for expanding the business in the US market, one of the key markets for Pirelli. In 2023, the Italian government, in accordance with the so-called "golden power" rule, limited Sinochem's influence on the management of Pirelli to make the company more autonomous, as the company's technologies are considered strategically important for the country.
After the adoption of the resolution that Sinochem no longer has control over Pirelli, the company noted that "this is the first, but not decisive step towards the necessary changes in the company's management in accordance with regulatory restrictions".
"The management confirms that it will continue the dialogue with the main shareholders to bring Pirelli's governance system in line with American standards, especially with regard to connected cars, in the interests of the company and all parties involved", the company's statement reads.
Sinochem stated that it strongly opposes the decision of the board of directors and pointed out that the "golden power" rule does not provide for any provisions for depriving the holding company of control over Pirelli. The Chinese side does not specify what countermeasures may be taken and whether, in particular, the decision of the board of directors will be contested in court.
Pirelli responded by stating that it disagrees with Sinochem's position and "confirms the correctness of the analysis of the situation conducted by the management and approved by the board of directors".
The USA is currently tightening control over the use of Chinese technologies in the automotive industry, and it will be prohibited to install software and hardware from Chinese companies in connected cars. The ban will come into effect starting from the 2027 and 2029 model years, respectively. Meanwhile, Pirelli's Cyber Tyre "smart" tires use data collection technologies during driving and real-time information transmission.
In March 2025, Pirelli announced that it had suspended the implementation of investment plans in the USA due to problems related to Sinochem being the company's largest investor.
Nine out of 15 members of the board of directors voted for depriving Sinochem of control over Pirelli. Chairman Jiao Jian and four other Chinese members of the board voted against, while another representative of the Chinese side abstained. The resolution was supported by four board members from Camfin, three representing institutional investors, as well as two Italian board members appointed by Sinochem.
Photo: Porsche