China National Chemical Corp. ’s (ChemChina) complete buy-out of Pirelli & C. SpA is in progress after the closing deal was passed Aug. 11, according to Tyres & Accessories.
With the new deal, ChemChina leads the buy-out, but other businesses will also own Pirelli shares. ChemChina, businesses owned by CEO Marco Tronchetti Provera and the Rosneft-owned Luxembourg-based Long Term Investments will all be the majority shareholders of Pirelli.
“The transaction contemplated by the Sale and Purchase and Co-Investment Agreement is aimed at implementing a long-term industrial partnership between CNRC [China National Tire & Rubber Co. – ChemChina’s tyre business], Camfin and LTI in relation to Pirelli,” the company said.
The buy-out will also de-list Pirelli from the stock exchange after purchase in order to “acquire the entire share capital of the Issuer and to achieve the delisting of the Issuer’s ordinary shares and savings shares from the Electronic Stock Market,” according to T&A.
Board changes will take place in Italy and China. Pirelli announced that board members Paolo Fiorentino and Gaetano Miccichè immediately resigned from the company’s board of directors on Aug. 1. According to Tyres & Accessories, the board of Marco Polo Industrial Holding has been appointed with new board members including Marco Tronchetti Provera, Alberto Pirelli, Bai Xinping (Chairman), Yang Xingqiang, Shi Jie, Ze’ev Goldberg, Wang Dan, Jiao Chonggao, Yang Xun, Zhang Haitao, Giorgio Luca Bruno, Carlo Acutis, Luca Rovati, Viacheslav Sheloputov, Natalia Mincheva and Gennady Pavlov.
Pirelli and ChemChina said the goal is to strengthen development plans to cover geographically strategic areas and integrate tire activities in the Industrial segment of the companies, while still preserving the continuity and independence of current management.