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, reports Reuters. 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.