Pirelli confirms Chinese Partnership deal
April 3, 2015
After several days of intriguing speculation it has now been confirmed that Milan based Pirelli has announced that it has sold a 26.2 per cent shareholding in the company to ChemChina Group.
This dramatic change in Pirelli shareholding has arisen following an agreement between China National Tire & Rubber (CNRC), a subsidiary of ChemChina and Camfin Spa to purchase the 26.2 shareholding at a price of Euros 15 per share which values the Pirelli Group at around Euros 7.1 Billion.
It is now anticipated that a further joint tender offer for the remaining Pirelli shares will be launched by ChemChina, Camfin and other investors.
The transaction at the moment is subject to approval by the Chinese and Foreign authorities and Marco Tronchetti, Chairman & CEO of Pirelli comments, "A partnership with such a global player as ChemChina is a great opportunity for Pirelli."
Only time will tell how this development will be viewed by the rest of the industry which is obviously a great boost for the Chinese tyre industry.
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