China National Chemical Corp acquires Italian Pirelli

(Photo: I.Vukša)

Chinese chemical giant. China National Chemical Corp , will take over Italian Pirelli, the fifth biggest tye producer in the wolrd.

Pirelli’s stakeholders yesterday signed an agreement where 143 years old symbol of Italian processing industry falls into hands of Chinese company. The transaction totals EUR 7,1 billion, AFP reports.

Holding Kamfin is the main shareholder of Pirelli with 26,1% ownership.

The agreement implies set up of new company, "Bidko" which will be the main stakeholder at Pirelli and "will be indirectly controlled by state-owned company "ChemChina". China will this way develop this kind of processing industry. Pirelli will in turn become more competitive with big rivals such as "Michelin" and "Continental", which want to penetrate to the Asian market.

Transaction implies appointing president from Chinese company while Marco Tronchetti Provera, current GM will be “delegated administrator” i.e. Operations Manager of the group. Headquarters and expert team of Pirelli will remain in Italy as for now.

ChemChina is 19th biggest chemical industry in the world with annual profit of EUR 70 billion.