In 2015, Pirelli’s CEO Marco Tronchetti Provera sold the company to Chinese-owned ChemChina. This was after 150 years of manufacturing Pirelli tires for different markets around the world.
ChemChina is currently owned by state firm Sinochem which owns about 37% of Pirelli. In the agreement, Sinochem’s shareholders have the power to pick 9 board members out of a total of 15. The company is looking to tighten control over the tire maker, making Italian regulators a bit concerned.
The Italian officials are looking to review the agreement thanks to the “Golden Powers” they possess. These are rules that govern assets considered strategic to a country. This comes after recent concerns from the West about China’s potential interference and influence in business matters.