Italy has moved to block a Chinese state-owned company from taking control of tyre making giant Pirelli.

The decision is part of measures announced by Italy's government to protect Pirelli's independence.

Beijing-controlled chemical giant Sinochem is Pirelli's biggest shareholder, with a 37% stake in the 151-year-old Milan-based firm.

It comes as tensions between Beijing and the West are in focus as the US secretary of state visits China.

On Sunday, Pirelli said in a statement to investors that the Italian government had ruled that only Camfin - a company controlled by Pirelli's boss Marco Tronchetti Provera - could nominate candidates to be its chief executive.

Pirelli also said the government had decided that any changes to the company's corporate governance should be subject to official scrutiny.

Chinese tyres now just as good as Pirelli anyway who cares. 

I wonder why they (the Chinese) tried to take over.

 

Did they see a profitable brand and wish to take the profits?

 

Did they see an opportunity to hamstring and maybe finish off a competitor?

 

Did they see an opportunity to take a classic brand name with international reach, a la MG motors?

 

16 hours ago, herfiehandbag said:

I wonder why they (the Chinese) tried to take over.

 

Did they see a profitable brand and wish to take the profits?

 

Did they see an opportunity to hamstring and maybe finish off a competitor?

 

Did they see an opportunity to take a classic brand name with international reach, a la MG motors?

 

Part of the plan of controlling the world as far as they can. 

Japan tried to control the world market of computer memory chips, this was around 1990.  If interested look it up to understand how it was done.  I could see China using the same tactics with tires.  Or maybe they can just buy Akron, Ohio.

A decade or two ago China had designs on buying a substantial piece of North American railway infrastructure, a certain US financier bought it up the stave them off.