Pirelli’s board is set to approve an agreement on Monday that will prevent the company’s largest shareholder, China’s state-owned Sinochem, from exercising control over the Italian tire maker. The move comes amid ongoing tensions between Chinese and Italian shareholders over the company’s governance.
Sinochem, which holds a 37% stake in Pirelli, will still retain its shares but will no longer be recognized as having control for regulatory purposes. The agreement, reported by Italian newspaper Il Messaggero, states that Sinochem will not hold dominant influence over Pirelli’s management, as decision-making will remain with the company’s leadership.
Neither Pirelli nor Sinochem immediately commented on the development.
Earlier this month, Pirelli paused plans to expand its investment in the U.S. market due to the ongoing governance disputes involving Sinochem. The company had hoped to address tensions between key investors before moving forward.
Pirelli’s board will also meet on Monday to approve the company’s 2024 financial report. Originally scheduled for late March, the meeting was delayed by a month due to the prolonged shareholder disagreements.
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