Italy Launches Probe into Sinochem’s Governance Role at Pirelli

Italy’s Prime Minister’s Office has initiated an administrative review against Chinese state-owned Sinochem, the largest shareholder in Italian tire manufacturer Pirelli, over a potential governance breach. This move follows Italy’s use of its “Golden Power” legislation to safeguard strategic national assets by limiting Sinochem’s influence within Pirelli.

Last year, Italy’s government set strict conditions requiring a qualified majority for key decisions at Pirelli and mandated that the company operate independently from Sinochem’s directives. The current investigation addresses whether there are any organizational or functional links between Pirelli and Sinochem that violate these terms.

The review, dated October 31, has a 120-day timeline for resolution. Sinochem, which holds a 37% stake in Pirelli, has expressed confidence that it has complied with Italian regulations and plans to clarify its position during the proceedings.

With Camfin, the vehicle of Italian executive vice chairman Marco Tronchetti Provera, holding a 25.7% stake, the probe highlights Italy’s commitment to shielding domestic companies from foreign state influence.

Source: Reuters

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