Pirelli Breaks Free from Sinochem's Grasp: A Strategic Realignment

Italy's Pirelli has declared that Chinese firm Sinochem no longer controls it, following Italy's government's use of 'golden powers' to ensure the tyre maker's autonomy. This move is expected to facilitate Pirelli's expansion into the U.S. market, despite Sinochem's opposition and potential legal challenges.

In a strategic move, Pirelli has announced that Sinochem, its former controlling stakeholder, no longer wields control over the company. This decision follows the Italian government's enactment of 'golden powers' legislation, aimed at preserving the autonomy of companies deemed strategically important.

The resolution marks a critical step for Pirelli as it seeks to realign its governance structures to facilitate expansion into the U.S. market, particularly in the realm of connected vehicle technology. This ambition comes amidst increasing regulatory barriers in the U.S. against Chinese-controlled entities.

Despite Sinochem's reported 37% stake in the company, Pirelli's management remains committed to adhering to American standards and regulations, aligning its operations accordingly to benefit its stakeholders. Sinochem has expressed strong opposition, leaving open the possibility of contesting the board's decision in court.

(With inputs from agencies.)