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Reuters
6 days ago
- Automotive
- Reuters
Italy resisting calls from Pirelli to tighten curbs on Chinese shareholder, sources say
ROME, June 4 (Reuters) - The Italian government is resisting calls from Pirelli's ( opens new tab executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor, sources said. Chinese state group Sinochem ( opens new tab is Pirelli's largest investor with a 37% stake, while Tronchetti Provera's Camfin vehicle holds a 27.3% shareholding. Tronchetti Provera has been the company's top boss for more than three decades. Pirelli itself and Camfin are at odds with Sinochem, claiming that its substantial holding poses a risk to Pirelli's ambitions to expand its business in the United States. Washington is cracking down on Chinese technology in the automotive industry, by banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Tronchetti Provera is lobbying the government to take further action to limit the Chinese influence at Pirelli, two sources familiar with the matter said, by strengthening the restrictions that Rome imposed on Sinochem in 2023 through the golden power rules aimed at protecting strategic assets. However, Prime Minister Giorgia Meloni's administration has so far rebuffed these calls, the sources added, asking not to be named due to the sensitivity of the matter. Rome's cautious stance partly stems from concerns it would rely excessively on its golden powers, one of the sources said, at a time when Italy faces a legal dispute with UniCredit over the way it uses the tool in vetting banking deals. All parties declined to comment. The government, which has ruled that Pirelli must not be subject to instructions from the Chinese investor, last November launched an investigation to check whether the presence of Sinochem executives on the tyremaker's board was in breach of these curbs. The inquiry is under way and before considering a harder stance on Sinochem, the government will at least check for violations of existing restrictions, the second source said. Emanuele Orsini, the head of Italian business lobby Confindustria of which Pirelli is a leading member, called on the government to defend the autonomy of the Italian group. "Part of Pirelli's shareholding, which is now in the hands of the Chinese government, is not approving the balance sheets and is therefore jamming up Pirelli, so I think something has to be done," Orsini said on Wednesday. In previous remarks on Tuesday, Orsini argued Sinochem should cut its stake in Formula One tyre supplier Pirelli to below 25%. Talks over governance adjustments have so far failed, with Camfin and Sinochem remaining far apart. Last month, the Chinese company described a proposal put forward by Pirelli to solve problems as "seriously unfair", while Camfin said that Sinochem's approach could lead to breaking the shareholder pact still in place between the two largest investors. Should the agreement be dropped, Sinochem and Camfin would be in a position to present separate slates at Pirelli's shareholders' meeting (AGM) next year, with one of them potentially taking full control of Pirelli's board. Two separate sources told Reuters that Tronchetti Provera was relying on further government support through golden powers in the event of a final clash with Sinochem at the AGM. Pirelli has been posting good results despite ongoing struggles in the auto industry. Its net profit rose 27% in the first quarter, while revenues were up 4%.
Yahoo
6 days ago
- Automotive
- Yahoo
Italy resisting calls from Pirelli to tighten curbs on Chinese shareholder, sources say
By Giuseppe Fonte and Giulio Piovaccari ROME (Reuters) -The Italian government is resisting calls from Pirelli's executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor, sources said. Chinese state group Sinochem is Pirelli's largest investor with a 37% stake, while Tronchetti Provera's Camfin vehicle holds a 27.3% shareholding. Tronchetti Provera has been the company's top boss for more than three decades. Pirelli itself and Camfin are at odds with Sinochem, claiming that its substantial holding poses a risk to Pirelli's ambitions to expand its business in the United States. Washington is cracking down on Chinese technology in the automotive industry, by banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Tronchetti Provera is lobbying the government to take further action to limit the Chinese influence at Pirelli, two sources familiar with the matter said, by strengthening the restrictions that Rome imposed on Sinochem in 2023 through the golden power rules aimed at protecting strategic assets. However, Prime Minister Giorgia Meloni's administration has so far rebuffed these calls, the sources added, asking not to be named due to the sensitivity of the matter. Rome's cautious stance partly stems from concerns it would rely excessively on its golden powers, one of the sources said, at a time when Italy faces a legal dispute with UniCredit over the way it uses the tool in vetting banking deals. All parties declined to comment. The government, which has ruled that Pirelli must not be subject to instructions from the Chinese investor, last November launched an investigation to check whether the presence of Sinochem executives on the tyremaker's board was in breach of these curbs. The inquiry is under way and before considering a harder stance on Sinochem, the government will at least check for violations of existing restrictions, the second source said. FAR APART Emanuele Orsini, the head of Italian business lobby Confindustria of which Pirelli is a leading member, called on the government to defend the autonomy of the Italian group. "Part of Pirelli's shareholding, which is now in the hands of the Chinese government, is not approving the balance sheets and is therefore jamming up Pirelli, so I think something has to be done," Orsini said on Wednesday. In previous remarks on Tuesday, Orsini argued Sinochem should cut its stake in Formula One tyre supplier Pirelli to below 25%. Talks over governance adjustments have so far failed, with Camfin and Sinochem remaining far apart. Last month, the Chinese company described a proposal put forward by Pirelli to solve problems as "seriously unfair", while Camfin said that Sinochem's approach could lead to breaking the shareholder pact still in place between the two largest investors. Should the agreement be dropped, Sinochem and Camfin would be in a position to present separate slates at Pirelli's shareholders' meeting (AGM) next year, with one of them potentially taking full control of Pirelli's board. Two separate sources told Reuters that Tronchetti Provera was relying on further government support through golden powers in the event of a final clash with Sinochem at the AGM. Pirelli has been posting good results despite ongoing struggles in the auto industry. Its net profit rose 27% in the first quarter, while revenues were up 4%. Sign in to access your portfolio
Yahoo
6 days ago
- Automotive
- Yahoo
Italy resisting calls from Pirelli to tighten curbs on Chinese shareholder, sources say
By Giuseppe Fonte and Giulio Piovaccari ROME (Reuters) -The Italian government is resisting calls from Pirelli's executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor, sources said. Chinese state group Sinochem is Pirelli's largest investor with a 37% stake, while Tronchetti Provera's Camfin vehicle holds a 27.3% shareholding. Tronchetti Provera has been the company's top boss for more than three decades. Pirelli itself and Camfin are at odds with Sinochem, claiming that its substantial holding poses a risk to Pirelli's ambitions to expand its business in the United States. Washington is cracking down on Chinese technology in the automotive industry, by banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Tronchetti Provera is lobbying the government to take further action to limit the Chinese influence at Pirelli, two sources familiar with the matter said, by strengthening the restrictions that Rome imposed on Sinochem in 2023 through the golden power rules aimed at protecting strategic assets. However, Prime Minister Giorgia Meloni's administration has so far rebuffed these calls, the sources added, asking not to be named due to the sensitivity of the matter. Rome's cautious stance partly stems from concerns it would rely excessively on its golden powers, one of the sources said, at a time when Italy faces a legal dispute with UniCredit over the way it uses the tool in vetting banking deals. All parties declined to comment. The government, which has ruled that Pirelli must not be subject to instructions from the Chinese investor, last November launched an investigation to check whether the presence of Sinochem executives on the tyremaker's board was in breach of these curbs. The inquiry is under way and before considering a harder stance on Sinochem, the government will at least check for violations of existing restrictions, the second source said. FAR APART Emanuele Orsini, the head of Italian business lobby Confindustria of which Pirelli is a leading member, called on the government to defend the autonomy of the Italian group. "Part of Pirelli's shareholding, which is now in the hands of the Chinese government, is not approving the balance sheets and is therefore jamming up Pirelli, so I think something has to be done," Orsini said on Wednesday. In previous remarks on Tuesday, Orsini argued Sinochem should cut its stake in Formula One tyre supplier Pirelli to below 25%. Talks over governance adjustments have so far failed, with Camfin and Sinochem remaining far apart. Last month, the Chinese company described a proposal put forward by Pirelli to solve problems as "seriously unfair", while Camfin said that Sinochem's approach could lead to breaking the shareholder pact still in place between the two largest investors. Should the agreement be dropped, Sinochem and Camfin would be in a position to present separate slates at Pirelli's shareholders' meeting (AGM) next year, with one of them potentially taking full control of Pirelli's board. Two separate sources told Reuters that Tronchetti Provera was relying on further government support through golden powers in the event of a final clash with Sinochem at the AGM. Pirelli has been posting good results despite ongoing struggles in the auto industry. Its net profit rose 27% in the first quarter, while revenues were up 4%.
Reuters
27-05-2025
- Business
- Reuters
Italy's business lobby calls for 8 bln euros in state aid for investments
MILAN, May 27 (Reuters) - Italy's leading business lobby, Confindustria, urged the Italian government to provide companies with an 8 billion euro ($9.5 billion) investment support package over the next three to five years, its President Emanuele Orsini said on Tuesday. Speaking at the lobby's annual assembly in Bologna, Orsini outlined potential strategies to stimulate firms' investments, including an alternative allocation of European Union's post-COVID funds and domestic tax breaks.
Reuters
02-04-2025
- Business
- Reuters
Trump tariffs will have massive effect on Italian companies, business lobby warns
ROME, April 2 (Reuters) - The effect of U.S. tariffs on Italian companies will be massive, the head of national industry lobby Confindustria said on Wednesday, calling for Europe to negotiate with President Donald Trump and avoid further escalation. Trump was poised to impose sweeping new reciprocal tariffs on global trading partners on Wednesday, upending decades of rules-based trade, threatening cost increases and likely drawing retaliation from all sides. Details of the so-called "Liberation Day" tariff plans were still being formulated and closely held ahead of a White House announcement scheduled for 4 p.m. Eastern Time (2000 GMT). "We will have to assess with great attention (the effects) of the tariffs that will be announced by Trump. There is a risk for Italy, our Research Centre is quantifying the impact, which will be massive," Emanuele Orsini told daily La Stampa in an interview. Confindustria is due to release a report on the impact of tariffs and the broader outlook for the Italian economy later on Wednesday. Orsini added that businesses with higher exports - such as the pharmaceutical sector, the fashion and food industries and production machinery - would be those most affected. He also warned that should "Europe fuel its confrontation with the U.S., China would benefit from it" and hoped that the European Union would remain united in its approach to the U.S. In response to tariffs, the business leader called for a cut in interest rates by the European Central Bank (ECB), new trade deals with countries including Mexico, India, Japan and Thailand and improving the European single market. Orsini added that he hoped that Italian entrepreneurs would not start to consider relocating production outside of the country as a result of the new tariffs. The entrepreneur had already said that tariffs on European Union imports would undermine the bloc's companies and its workforce and require a strong response from the EU.
