ChemChina agrees to buy Italian Tire Maker Pirelli
A Chinese state firm has agreed to buy the Italian tire maker Pirelli, renowned for its Formula One equipment and racy calendars.
Pirelli's largest shareholder Camfin said on Sunday that it has signed a deal with state-owned chemical giant ChemChina to create a long-term industrial partnership for the tire manufacturing firm.
ChemChina confirmed it had agreed to pay 15 euros per share for Camfin's 26.2% stake in the tire maker. According to a separate statement issued on Monday, ChemChina also plans to make a tender offer to other investors for their share.
Bloomberg News reported that the deal will enable ChemChina to hold a controlling stake of at least 50.1% of Pirelli in the end.
ChemChina and Camfin agreed to maintain stability in Pirelli’s operations and management through the process, the ChemChina statement said.
Camfin said, “The headquarters and know-how of Pirelli will remain in Italy”.
Chairman Marco Tronchetti Provera will keep on serving at the post of chief executive of the group with the Chinese side naming a new chairman of the board.
The partnership with a global player like ChemChina represents a big opportunity for Pirelli, he said.
ChemChina chairman Ren Jianxin said the deal would allow the partners to continue to build a world leader in the tire industry.
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