Italy has decided to block the efforts of a Chinese state-owned company to take control of the well-known tire manufacturer Pirelli, the BBC writes.
The decision is part of measures taken by the Italian government to protect the independence of the well-known tire maker.
Beijing-controlled chemical company Sinochem owns 37% of Pirelli, making it the main shareholder of the Milan-based company. On Sunday, the 18th of June, Pirelli announced in a statement to investors that the Italian government has decided that
only the Camfin, managed by Marco Tronchetti Provera will be allowed to nominate Pirelli’s CEOs.
The Italian government worked on the new terms after Sinochem informed in March of plans to renew the existing shareholders’ agreement.
In 2015, Pirelli was sold to a group of investors, including ChemChina and Camfin, for 7.1 billion euros. Six years later, ChemChina merged with state-owned Sinochem. Also, 9% of Pirelli shares belong to the Chinese Silk Road investment fund.
US Secretary of State Antony Blinken concludes his visit to China on the 19th of June, which is one of the rare occasions when such a high-level US official visits this Asian country. The visit comes at a time when relations between China and many Western countries have deteriorated. The main points of contention are trade and security issues and the status of Taiwan.
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