MILAN (Reuters) -Pirelli’s board is expected to approve on Monday an accord between shareholders to establish that the group’s largest investor, China’s state-owned Sinochem, does not exercise control over the tyre maker, an Italian daily said. Chinese and Italian shareholders in Pirelli have been at odds over the group’s governance, with Sinochem posing a hurdle […]
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Pirelli set to declare end of Chinese investor’s control over governance, paper says
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MILAN (Reuters) -Pirelli’s board is expected to approve on Monday an accord between shareholders to establish that the group’s largest investor, China’s state-owned Sinochem, does not exercise control over the tyre maker, an Italian daily said.
Chinese and Italian shareholders in Pirelli have been at odds over the group’s governance, with Sinochem posing a hurdle to Pirelli’s U.S. expansion ambitions.
Under an agreement reported by Il Messaggero newspaper, while Sinochem will retain its 37% stake in Pirelli, it will no longer be considered as having control of the company for regulatory purposes.
The agreement would declare that Sinochem holds no dominant influence over the company’s governance, given that decisions are taken by the management, Il Messaggero reported.
Pirelli and Sinochem were not immediately available to comment.
Pirelli earlier this month said it had put on hold plans to invest further in the United States as it tried to smooth out tensions linked to having Sinochem as its largest investor.
Pirelli’s board meets on Monday to approve the company’s financial report for 2024. Initially scheduled at the end of March, the board meeting was postponed by a month amid protracted tensions between leading investors.
(Reporting by Valentina Za and Giulio Piovaccari; Editing by Aidan Lewis)