It seems Italian tire manufacturer Pirelli will soon be bought by the state-owned China National Chemical Corp (ChemChina). A report by Reuters says Pirelli’s top shareholders have already agreed to a deal estimated to be worth around $9.7 billion (that number excluding Pirelli’s net debt).
China National Tire & Rubber (CNRC), ChemChina’s tire production division, will reportedly acquire a 26.2% stake in Pirelli shares from the Italian holding firm Camfin, and then launch a takeover bid for the remainder. Pirelli’s current management team will be maintained, ChemChina says.
“The partnership with a global player like ChemChina, through its affiliates, represents a great opportunity for Pirelli,” said Marco Tronchetti Provera, Pirelli chair and chief executive officer. “CNRC’s approach to business and strategic vision guarantee Pirelli’s development and stability.”
But the deal isn’t done yet, and still needs regulatory approval from both Italian and Chinese authorities.