China National Chemical Corp (ChemChina) will buy Pirelli, the fifth largest tire maker in the world, in a US$7.7 billion deal that could give the Chinese firm control of the Italian company, Reuters reported. ChemChina’s tire-making division will enter a joint venture to buy the 26.2% stake that Italian holding firm Camfin owns in Pirelli, then launch a takeover bid for the remaining shares. ChemChina is then expected take Pirelli private, creating a global leader with a 10% market share, according to UBS.
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