Pirelli and the mystery of the Chinese shareholder: rumors of sale of the controlling stake

Is the controlling stake in Pirelli up for sale? The Chinese of Sinochem, according to the Bloomberg agency, are allegedly evaluating the sale of the controlling stake in the tire manufacturer led by Marco Tronchetti Provera and listed on the Milan Stock Exchange. However, according to Bloomberg (quoting sources close to the dossier), a decision has not yet been made. That was enough, however, to trigger a current of sales on the stock in Piazza Affari: immediately down by 4%, to then go back to -2.

Sinochem Holdings is reportedly considering selling its 37% stake in Pirelli to streamline its global portfolio. Sinochem Group and China National Chemical Corporation have merged and through Marco Polo manage the controlling share of the Italian group, while 27% is in the hands of institutional investors, 14% to Camfin di Tronchetti and 9% to Silk road fund. Finally, 5% belongs to the world leader of Brembo braking systems of the Bombassei family, which at the time justified its entry into Pirelli with the possibility (denied by Tronchetti) of studying synergies between the two groups.

Beijing-based Sinochem is said to be in the early stages of reviewing its stake in Pirelli and potential buyers, including private equity firms, have shown a preliminary interest in the stake in the Italian company. The US agency recalls that the stake in Pirelli was purchased by the Chinese holding company, which ultimately answers to the political power of Beijing, for about 8 billion dollars in 2015, while today it has a market value of about 4.8 billion ( -20% only in the last year).

It is not the first time that news has circulated about a possible disengagement of the Chinese from Pirelli, but then they promptly proved to be unfounded. This time, however, the multinationals in Beijing are grappling with the new government directives which push towards a reduction of their heavy exposure abroad and a refocusing on the core business. And Sinochem mainly deals with chemical products, agro-industry, petrochemical, machinery and plants for the environment. Although in addition to Pirelli, it is present in the tire sector with Aeolus Tire, listed in Shanghai,

In all this, a spokesman for Sinochem said that the group “is not aware of the news”. Whilst in Pirelli, which in effect would be the subject of the sale, mouths absolutely sealed.