Rome again limits Sinochem's influence on Pirelli
The Italian government has introduced a number of restrictions on the Chinese state-owned conglomerate Sinochem, the largest shareholder of Pirelli with a 34% stake, using the so-called "golden power" rule created to protect assets of strategic importance to the country.
According to the government decree, the number of board members that Sinochem can nominate has been reduced from eight to three, and two of them must be independent. Currently, the board consists of 15 members, eight of whom represent the Chinese investor.
Sinochem's board members are also prohibited from holding senior corporate positions, such as chairman of the board and CEO, and Pirelli is no longer required to share confidential information with the investor. These and other restrictions will apply as long as Sinochem owns more than 9.99% of Pirelli's shares, which confirms Rome's desire to force the holding to reduce its stake in the tire company.
Earlier, Pirelli had called for restrictions on Sinochem, stating that its presence among the company's shareholders complicates the tire manufacturer's plans to develop in the US market, as Washington is tightening requirements for the use of Chinese technology in the automotive sector. This requirement was supported by the company Camfin, which is controlled by Italian entrepreneur Marco Tronchetti Provera and owns 26% of Pirelli's shares - with plans to increase the stake to 29.9%.
The Italian government also confirmed that Sinochem must avoid exerting any pressure on Pirelli in accordance with the requirements established in 2023.
In January 2026, Camfin announced that it would not extend the shareholder agreement with Sinochem, which, according to Reuters, opened the way for new intervention from Rome. Last year, it was also reported that Sinochem is ready to consider offers from potential buyers regarding the sale of part or all of its stake in Pirelli, provided that the price is high enough. According to the new restrictions, Sinochem is required to notify the Italian authorities of any transfer of Pirelli shares, which must not be made in favor of organizations affiliated with the Chinese government or controlled by it.
Sinochem stated that it may appeal Rome's decision in court, expressing "deep regret over the government's decision" and stating that it "reserves the right to use all available legal means to protect its legitimate rights and interests of its shareholders".
"Such measures are discriminatory and will inevitably have a negative impact on Italy's investment climate," the holding added.
Pirelli's range includes so-called "cyber tires" with built-in sensors that allow data to be collected and transmitted during driving, and such technologies are subject to Washington's restrictions. Earlier, Sinochem had offered to convert assets related to "smart" tires into a separate company, but Pirelli refused to split the business.