Pirelli: Sinochem sources sceptical of divestment

Three sources “close to the matter” have told Reuters they expect Sinochem Holdings will retain its stake in Pirelli despite Italy’s Golden Power Decree restrictions. One commented that the state-owned company is likely to continue as a long-term investor even though the decree leaves it with little say in Pirelli’s management.

Reuters shares another source’s opinion that China may view an exit from Pirelli as a “reputational setback” at a time of “tenser relations” with Western countries. This source added that China is “already in the money” with its investment in the tyre maker.

Sinochem holds 37.01 per cent of all contributed ordinary shares in Pirelli & C. S.p.A. through Marco Polo International Italy S.r.l. Other Chinese Pirelli shareholders include the state-owned investment vehicle Silk Road Fund (9.02%) and the Hixh Group’s LongMarch Holdings (3.68%).