Italy’s government said on Friday it had taken steps to limit the influence of China’s Sinochem on tyremaker Pirelli (PIRC.MI), including a mandatory qualified majority for “some” strategic decisions made by the company’s board.
Rome’s decision comes after Sinochem, Pirelli’s largest shareholder with a 37% stake, notified the Italian government in March of plans to renew and update an existing shareholder pact with fellow investor Camfin, the vehicle of Pirelli’s CEO Marco Tronchetti Provera.
The right-wing administration scrutinised the pact under “Golden Power” rules aimed at protecting assets deemed strategic for the country, at a time when relations between China and Western countries have entered a tenser phase.