Italy's government acts to curb Chinese influence on Pirelli
Business
Prime Minister Giorgia Meloni's administration scrutinised the pact under "Golden Power" rules
ROME (Reuters) - Italy's government said it had taken steps to limit the influence of China's Sinochem on tyremaker Pirelli, including a mandatory qualified majority for 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 update an existing shareholder pact with Camfin, the vehicle of Pirelli CEO Marco Tronchetti Provera.
Prime Minister Giorgia Meloni's 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.
Sinochem was not immediately available for comment, while Pirelli declined to comment.
Sources had previously told Reuters that the government was concerned about Sinochem's growing influence on Pirelli, as the proposed pact would have allowed the Chinese group to appoint more board members and potentially choose Pirelli's future CEOs.
