Tire manufacturer Pirelli said on Saturday (April 11) that Italy has imposed several restrictions on China National Chemical Corporation (ChemChina) in an attempt to resolve governance disputes surrounding Pirelli.
According to Reuters, Pirelli stated in a statement that these restrictions will remain in effect as long as ChemChina holds more than 9.99% of Pirelli’s shares, which also shows that Rome hopes ChemChina will reduce its 34% stake.
ChemChina is Pirelli’s largest shareholder, while Italian businessman Marco Tronchetti Provera holds about 26% through his company Camfin and plans to increase this to 29.9%.
Pirelli and Camfin have both called for restrictions on ChemChina, saying its shareholding position complicates Pirelli’s expansion plans in the United States, as Washington is tightening restrictions on Chinese technology in the automotive sector.
Pirelli and Camfin have both called for restrictions on ChemChina, saying its shareholding position complicates Pirelli’s expansion plans in the United States, as Washington is tightening restrictions on Chinese technology in the automotive sector.
This week, the Italian government invoked its "golden power" legislation, designed to protect strategic assets, to impose related restrictions on ChemChina.
Italy ruled that ChemChina is allowed to submit a list of candidates for Pirelli's board renewal, with the number of candidates not exceeding three, and at least two of them must be independent directors.
Pirelli's board currently has 15 members, eight of whom were nominated by ChemChina.
Italy ruled that ChemChina is allowed to submit a list of candidates for Pirelli's board renewal, with the number of candidates not exceeding three, and at least two of them must be independent directors.
Pirelli's board currently has 15 members, eight of whom were nominated by ChemChina.
Pirelli stated that directors nominated by ChemChina shall not serve as chairman or CEO or hold other senior management positions, and listed related restrictions.