Pirelli goes to ChemChina

The news was in the air for the entire weekend; the official announcement finally came in the late afternoon of Sunday, 22 March. China National Tire & Rubber (CNRC), controlled by the Chinese chemical colossus ChemChina, has signed a binding agreement for a long-term partnership with Camfin, which holds a 26.193% share in Pirelli.
The agreement involves the acquisition of the Pirelli shares held by Camfin and the simultaneous reinvestment by Camfin of part of the proceeds from the transaction. The acquisition will be carried out via a newly constituted Italian company (Bidco), which will be indirectly controlled by CNRC, as majority shareholder, and by Camfin. Bidco will then launch a full offer of 15 euros for Pirelli stocks to achieve an ownership share of 51% to 65%, while the shares will be traded at Piazza Affari until the moment of withdrawal. Delisting has been planned to accelerate the industrial reorganization time, but it is not yet known exactly how long it will take.
The reorganization that will bring Pirelli under Chinese control is expected to be completed next summer. The Pirelli headquarters and R&D Center will remain in Italy and Marco Tronchetti Provera will remain in the position of managing director. The president of the group, on the other hand, will be appointed by CNRC. Pirelli shall be split in two, separating auto and motorcycle tyre production (Pirelli Tyre) from truck tyre production (Pirelli Truck). The truck tyre division will be combined with Aeolus Tyre (of ChemChina) to create the world's fourth largest truck tyre manufacturer, while Pirelli Tyre may be again listed on the stock exchange in four years.