ROME, June 18 (Reuters) – Italy’s government has ruled
that China’s Sinochem cannot designate the chief
executive of Pirelli despite being its main
shareholder with a 37% stake, the Italian tyremaker said on
Sunday.
The decision is part of the measures announced this week by
Rome’s right-wing administration to shield the autonomy of
Pirelli and its management.
Rome’s move came after Sinochem 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.
Pirelli said Rome had concluded that any changes to the
company’s corporate governance, including the failed renewal or
signing of its shareholder agreement, should be subject to
government scrutiny.
Prime Minister Giorgia Meloni’s administration examined the
pact under the so-called “Golden Power” rules aimed at
protecting assets deemed strategic for the country, at a time
when relations between China and Western countries have become
more strained.
Rome has ruled that only Camfin could nominate CEO
candidates for Pirelli, the company said.
Under the revised pact between Camfim and Sinochem, which
will now need to be amended to reflect the government’s steps,
Tronchetti Provera would lose powers he currently enjoys to
designate the group’s CEO from 2026, leaving that task to
Pirelli’s Chinese-controlled board.
Rome also said Sinochem should pick no more than eight
members of Pirelli’s 15-strong board, leaving four to Camfin.
A further limit established that Pirelli should not be
subject to instructions from the Chinese group.
Announcing the remedy on Friday, the government said that
“some” strategic decisions by Pirelli’s board would require
approval from at least 80% of its directors.
Pirelli shareholders vote to pick a new board on July 31,
with current deputy CEO Giorgio Bruno set to replace Tronchetti
Provera, who would stay on as executive vice-chairman.
Camfin, which has options to buy a further 4.6% of Pirelli,
earlier this year signed a separate shareholder agreement with
Italian brakes maker Brembo, which owns a 6% stake in
the tyremaker.
Analysts see the move as an initial step to build an
alternative and stable group of Italian shareholders for the
company.
(Reporting by Giuseppe Fonte; Additional reporting by Valentina
Za and Giulio Piovaccari in Milan and Akanksha Khushi in
Bengaluru, Editing by Louise Heavens and Sharon Singleton)