Italy to meet Pirelli and its investors over Chinese control spat, sources say

MILAN, March 13 : Italian government officials will meet on Monday with representatives from Pirelli and of its two main investors as part of efforts to address a spat over Chinese influence on the tyremaker, two sources said.

Pirelli’s two largest shareholders, Chinese state-owned Sinochem with 34 per cent, and Camfin, the investment vehicle of Executive Vice President Marco Tronchetti Provera, with 25.3 per cent, have been at the centre of a protracted row.

Tensions have intensified ahead of new U.S. rules curbing the use of Chinese technologies in the automotive sector.

Camfin – and Pirelli itself – have called for curbs on Sinochem’s ownership position, saying that it would otherwise complicate Pirelli’s expansion plans in the United States, a key market for its premium tyre business.

Italy’s government, under so-called golden powers that can be used to protect assets deemed of national interest, is considering options including transferring Sinochem’s stake to a blind trust, freezing its voting rights.

The Chinese group would favour a temporary solution, allowing it to retain its stake in Pirelli in the long period, although with restricted governing powers, one of the sources said on Friday.

A government decision on Pirelli’s governance is expected around mid-April, the two sources said.

Sinochem was also considering issuing a bond convertible in Pirelli’s shares, which could help it to temporarily cut its shareholding in the tyremaker, two other people briefed with the situation earlier told Reuters.

News of Monday’s meetings, involving officials from Prime Minister Giorgia Meloni’s office, was first reported by Italian news agency Radiocor.