The group has postponed key meetings to address governance challenges posed by its major Chinese shareholder, Sinochem, which currently holds 37% of the company. With a new US law looming that could affect its American market operations, it is exploring options to rebalance its shareholding or revise its governance structure, while investigations into potential violations of golden power regulations add further uncertainty
Management’s deliberation. Pirelli’s management is working to find a shared solution to the company’s governance challenges, particularly regarding the oversized influence of its major Chinese shareholder, Sinochem.
- Pirelli’s management “will continue to work on finding a solution that will allow the company to adapt to the new regulations of the American market, as it does in all the markets in which it operates,” said CEO Andrea Casaluci on Thursday, after the board of director approved a postponement (proposed by the CEO) of the resolutions of the board meeting to 28 April.
- Consequently, the shareholders’ meeting will be held on 12 June instead of 27 May as previously scheduled.
Governance under pressure. The issue centres on Chinese state-owned Sinochem’s current 37% stake, which threatens to hamper the Italian tyre maker’s growth plans, especially in the American market.
- A new law, set to effect in 2027, will ban from the US the sale or import of connected or autonomous vehicles that use hardware or software from Chinese or Russian companies.
- In response, Pirelli is exploring options to rebalance its shareholding.
- One scenario involves reducing Sinochem’s stake from 37% to 25%, thereby releasing a 12% block that, according to Il Sole 24 Ore, could be swiftly reallocated to qualified investors.
- Alternatively, Pirelli might pursue a governance revision to further limit Chinese influence beyond the measures implemented by the government using the so-called golden power in 2023.
Market dynamics and strategic concerns. Meanwhile, Mtp-Camfin—currently holding 26.4% and led by Marco Tronchetti Provera—has already secured authorisation to increase its stake to 29.99%.
- This development underscores the volatile nature of the situation, where any decision could significantly impact Pirelli’s strategic positioning.
- Additionally, La Stampa reports that a verdict on a proceeding regarding Sinochem’s potential violation of golden power regulations could be announced within a month.
- The investigation focuses on the dual roles held by Chinese managers in both upstream companies and Pirelli, and there is speculation that the government might impose further restrictions on Beijing to safeguard the group’s future, particularly its American ambitions.
