Pirelli on the Verge of Being Sold to Chinese Firm
How much is the Pirelli brand worth? Reportedly $7.7 billion.
That’s the price China National Chemical Corp. (ChemChina) will end up paying if a deal goes through, as ChemChina bid 15 euros per share for the tire manufacturer for a total of 7.1-billion euros. The price may even go up as Pirelli shares rose to 15.76 euros, which is above the offer price, pointing that ChemChina may have to lift its bid to win over shareholders. Pirelli is the world’s fifth-largest tire maker and if the deal goes through, ChemChina will have access to technology to make premium tires, giving the Italian tire manufacturer a boost in the massive Chinese market.
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The deal isn’t entirely random as ChemChina’s partner, Cam Finanziaria, is Pirelli’s largest investor and is partially owned by Chairman Marco Tronchetti Provera. The tender for the transaction is expected to start this summer.
Details to the offer include ChemChina agreeing to pay 15 euros per share for the 26.2 percent of ownership by Cam Finanziaria, or Camfin. ChemChina will then make a public tender offer for the rest of Pirelli at the same price. If the deal goes through, the agreement will see ChemChina owning at least 50.1 percent ownership with Camfin getting as much as 49.9 percent. It would also be the largest Italian purchase made by a Chinese company to date.
[Source: Automotive News]
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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I read somewhere not even the Italians knew this was going on.
Not a surprise. Unfortunate however. Though if they are buying and "leaving" to operate as it was then the nationality of the owner makes no difference.