Chinese investor may sell stake in Pirelli

The Chinese holding company Sinochem may consider selling its stake in Pirelli if the price is high enough, Reuters reports, citing sources familiar with the matter.

Earlier this week, the Italian government announced that Sinochem is not violating the country's rules aimed at ensuring the independence of strategically important companies, and the sale of the Chinese investor's stake could be part of Rome's efforts to end the dispute between it and the Italian Camfin, Pirelli's second-largest shareholder.

Camfin notes that Sinochem's presence as Pirelli's main shareholder is hindering the tire manufacturer's plans in the US, as Washington tightens requirements for the use of Chinese technology in the automotive sector.

Camfin is a company owned by Marco Tronchetti Provera, an Italian businessman who has headed Pirelli since 1992 and currently holds the position of executive vice chairman of the company's board. Camfin's stake in Pirelli is 27.4%.

On September 29, the Italian government ruled that Sinochem is not violating the "golden power" rules introduced to protect the independence of strategically important companies. The government stated that it "continuously supports constructive dialogue" with Pirelli and its shareholders "to timely adapt the existing tools to the new requirements of the markets where the company is present and ensure its competitiveness in all areas where it operates".

As one source notes, after Sinochem and Camfin failed to reach an agreement within a year, the Chinese side is now willing to focus on negotiations with the Italian government and discuss various options for developing the situation, including the sale of its 37% stake in Pirelli.

The source reports that although Sinochem considers itself a long-term investor in Pirelli, the company will evaluate offers from potential buyers, and other options that do not involve the sale of the entire stake of the Chinese shareholder may be considered.