Deal “Can Only Benefit” Pirelli, Provera Says

Deal ‘Can Only Benefit’ Pirelli, Provera Says

Pirelli-Tronchetti-ProveraPirelli CEO Marco Tronchetti Provera told employees today that the partnership agreement with ChemChina “can only benefit” Pirelli’s factories and employment.

On Sunday, Tire Review reported that ChemChina entered into an agreement with Pirelli SpA, agreeing to purchase Camfin’s 26.2% stake of Pirelli. Camfin is Pirelli’s largest shareholder.

The deal, which is expected to close during the summer, will give ChemChina’s subsidiary, China National Tire and Rubber Co., access to Pirelli’s technology and expand the Italian tiremaker’s presence in China.

“The agreement with the Chinese will have no impact on employment,” said Provera. “But in fact the opportunity with a partner like ChemChina is for the company to become bigger and to have a more effective penetration of the Asian market.”

Provera will still retain a degree of ownership and direction of Pirelli through Nuove Partecipazioni, according to Italian daily Corriere della Sera. The paper suggests that, under the deal, Nuove Partecipazioni will own a share of 22.6% Newco, Pirelli’s new owners. Provera will also retain his chief executive status at Pirelli, according to multiple reports.

Provera told employees that the Chinese partner “has no intention, as can be seen both in the agreements and in the clauses of the bylaws, to interfere in the operational management of the group.”

“The headquarters and R&D will be kept in Italy,” Provera said. “Technologies can’t be transferred to third parties. Changing these rules would require a vote of 90% of a shareholders’ meeting. All proposals about management, strategies and choice of managers remain the sole responsibility of Pirelli’s CEO and can only be rejected by the board in cases where it can be demonstrated that the proposals are not in the interests of Pirelli.”

Overall, Provera told employees that the entrance of a new shareholder will “only benefit” the company.

“The Chinese partners appreciate our ability to produce tires of very high quality and our factories, which are at the cutting edge worldwide,” Provera said. “These are the points of strength in which we will continue to invest because they will allow us to maintain our leadership in the prestige segment and to be among the leading producers in the premium segment.”

Camfin’s 26.2% stake in Pirelli is valued at 7.1 billion euro (approximately $7.7 billion USD).

You May Also Like

Nokian Tyres releases 2023 sustainability report

Highlights of the company’s sustainability actions in 2023 include a commitment to achieve science-based net-zero emissions by 2050.

Nokian-Tyres-sustainability-report

Nokian Tyres recently published its Sustainability Report 2023. According to the report, Nokian Tyres achieved several external sustainability ratings, such as inclusion in the Dow Jones Sustainability Europe Index, platinum medal from EcoVadis, an AAA rating from MSCI and a leadership-level score of A- on the CDP Climate report.

Giti Tire announces winners of STEAM competition

New this year, the winning teams from each division will progress to compete out of state.

Giti-STEAM-Winners
Nexen Tire to be the official tire partner of the San Diego Padres

Nexen Tire will be featured on a variety of marketing assets, including billboards and in-ballpark branding at Petco Park.

Nexen-Tire-Padres
WGH to recall up to 520,000 Terrain Attack, Terrain Pro winter tires

The tires are labeled as snow tires, but do not have sufficient traction to perform in all snow weather conditions, according to the National Highway Traffic Safety Administration.

Recall
K&R Tire Center to host grand opening of new Flint, MI location

The company said it will have representatives from Goodyear, local customers and dealership representatives on hand to celebrate.

KR-Tire-center

Other Posts

Bridgestone Retail Operations rolls out brand refresh for Tires Plus, Hibdon Tires Plus

Updates to the logo include a single-color tire mark; a logo palette comprised of Tires Plus yellow, black and red; and refined typefaces.

Tires-Plus-new-branding
Yokohama’s Advan Sport V105 tires will be OE for Subaru Impreza in Europe, Latin America

Yokohama said the tire enhances the car’s handling stability and comfort while reducing rolling resistance.

Yokohama-Advan-Sport-V105
OTAA to host free training for members in Akron, OH

The association said these workshops are designed to enhance technician’s technical expertise and keep them up-to-date with the latest industry advancements.

Stock-technician-training-1400
Hankook Tire debuts Great Catch Rebate through July 7

Drivers who purchase at least four tires from eligible lines will qualify for savings of up to $120.

2024-Great-Catch-Rebate-1400