Pirelli shares delisted post ChemChina buyout

Marco Polo Industrial Holding S.p.A., Pirelli’s owner and a company indirectly controlled by China National Chemical Corporation through China National Tire & Rubber Co., Ltd., has moved to the next stage of its takeover, de-listing Pirelli shares from the Italian stock exchange.

During the early stages of takeover negotiations many market observers picked up on ChemChina’s plans to effectively split the Pirelli passenger car tyre business and its truck tyre business into two separate parts. Analysts from at least two investment banks suggests this move is a prelude to a double re-listing at some point in the future. The theory is that the re-listing of separate high performance car tyre and truck tyre businesses creates a portfolio where the value of the parts is greater than the value of the original whole.