Pirelli’s parent company, state-owned group China National Chemical Corporation (ChemChina), has deep pockets. After acquiring the tyre maker last year it announced its purchase of KraussMaffei Group and shares in Mercuria Energy Trading in January. And yesterday ChemChina gave word of a deal that will be China’s largest overseas takeover ever – the company intends to acquire Swiss agrochemical and seeds company Syngenta AG for US$43 billion by way of a public tender offer.
It recently acquired Pirelli and KrausMaffei, and China National Chemical Corporation has now purchased a stake in Mercuria Energy Trading, an integrated energy and commodities company with a (2014) turnover of US$106 billion. The Chinese chemical company has taken a 12 per cent share in the shareholding structure of Mercuria.
Leading chemical group China National Chemical Corporation, or ChemChina, has agreed to acquire machinery manufacturer KraussMaffei Group from Onex Corporation for a cash enterprise value of 925 million euros. ChemChina’s acquisition of the KraussMaffei Group covers the German company’s three brands of products, including the KraussMaffei Berstorff range of extruders, roller head systems and cap strip systems for the tyre industry. The transaction is subject to closing conditions including customary regulatory approvals.
Pirelli & C. S.p.A. is to officially reverse merge with Marco Polo Industrial Holding S.p.A. This transaction will be submitted to the extraordinary shareholders’ meetings on 15 February 2016, with a view to completing during the first half of 2016.
Now ChemChina has completed the purchase of Pirelli and the de-listing of the well-known Italian tyre firm’s shares, the first signs of how Pirelli will be integrated into the ChemChina tyre group are emerging. Walking onto the ChemChina stand, the first thing you notice is that the Pirelli logo now features at the head of a list of group-owned tyre business in at least two prominent positions on the large stand. While for many in Europe the sight of Pirelli alongside Aeolus, Double Happiness, Yellow Sea and Torch may feel a little strange, the obvious implication of ChemChina’s decision to present it this way is that we all need to start getting used to the new reality. Secondly, you can’t ignore that this move communicates the underlying intention to integrate Pirelli into the ChemChina group rather
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.
Following the re-opening of its well-reported takeover offer, Marco Polo Industrial Holding S.p.A. now owns 95.969 per cent of the ordinary share capital of Pirelli. The news suggests the takeover of Pirelli is now virtually complete and Marco Polo (which itself is owned by China National Chemical Corporation, China National Tire & Rubber Co., Ltd., Camfin S.p.A., Coinv S.p.A. and Long-Term Investments Luxembourg S.A. (which is controlled by Rosneft) is now the shareholder of basically all of Pirelli’s stock. The latest developments have taken place in the two weeks since Marco Polo became Pirelli’s majority shareholder on 8 October.
Newly inaugurated Pirelli president, ChemChina’s Ren Jianxin, recently told Corierre della Sera of his pride in his company for completing the recent acquisition of Pirelli and his personal satisfaction to be working with Marco Tronchetti Provera. According to the interview, which was published in the Italy daily newspaper on 22 August, the acquisition and subsequent appointment is a great moment for ChemChina and for Ren himself it is a great honour to be Pirelli president and to work with Marco Tronchetti Provera, who he sees as an older brother and a teacher. He also revealed details of the wider strategy behind the investment.
On 22 October, Pirelli, Rosneft and Synthos signed a further Memorandum of Understanding (MoU) regarding the next phase of their synthetic rubber cooperation. The MoU refers to the approval of the results of an initial feasibility study begun in April regarding the development of a synthetic rubber plant construction project in Nakhodka. The document was signed during the Fourth Eurasian Forum in Verona by Rosneft chairman of the management board Igor Sechin, Pirelli executive vice chairman and CEO Marco Tronchetti Provera, and Synthos majority stakeholder Michal Solowow.
As of yesterday (12 October 2015) Marco Polo Industrial Holding’s offer for Pirelli ordinary share capital achieved an acceptance rate of 53.6 per cent. However, because today (13 October) is the last day of the offer period, it is very likely that this percentage will be significantly more at the end of the day. This means the pre-announced plans for ChemChina to buy around two-thirds of Pirelli is well underway and therefore the company is now effectively Chinese-owned.
On 29 September Marco Polo Industrial Holding S.p.A purchased 45,143,033 ordinary Pirelli & C. S.p.A. shares representing approximately 9.5 per cent of the company and 190,307 savings shares from certain investment funds managed by Paulson at a price of Euro 15.00 per share.
Rosneft and China National Chemical Corporation (ChemChina) signed a Heads of Agreement on cooperation in equity investment in ChemChina Petrochemical Corporation (CCPC) and a Memorandum of Understanding for cooperation on the project of the Far-East Petrochemical Company (FEPCO).
Marco Polo Industrial Holding S.p.A. , which is indirectly by China National Chemical Corporation (ChemChina), through China National Tire & Rubber Co., Ltd., has confirmed that the regulator (Consob) has approved the firm’s offer document related to the mandatory tender offer of the ordinary shares of Pirelli & C. S.p.A. listed on the Electronic Stock Market and the voluntary tender offer launched by the same firms.