Thursday, June 20, 2024
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CNCC closes in on Pirelli takeover

ChemChina’s China National Tire & Rubber Co. (CNRC) subsidiary signed an agreement with Camfin SpA to buy Camfin’s 26.2% Pirelli shareholding at 15 euros a share. This values Pirelli at around 7.1billion euros (£5.15bn).  A joint tender offer by ChemChina, Camfin and other investors on the rest of Pirelli’s shares is now expected to follow.

An official statement confirming the reports that have been circulating for the last week said the agreement was designed to ensure the operation and management team of Pirelli would remain relatively stable.

However, ChemChina has also said somewhat inevitably that a “new business growth strategy will be defined”. The transaction is subject to approvals by the Chinese and foreign governmental authorities.
 

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