Pirelli has published updated details of shareholder agreements that reflect the “diverging evaluations” of Camfin S.p.A. (Camfin) and Marco Polo International Italy S.r.l. (MPI Italy) regarding the cessation of control by the Sinochem Group. The document, dated 17 June 2025, asserts that voting patterns at the recent shareholders’ meeting contradict MPI Italy’s claims of control over the tyre maker.
During the last week it emerged that the ongoing governance tensions between Pirelli and its major shareholders Camfin (controlled by Marco Tronchetti Provera) and Marco Polo International (which is controlled by Chinese petrochemical major, Sinochem) remain.
On 14 May 2025, Camfin released a note supporting Pirelli’s “strategies” as published in the Italian tyremaker’s first quarter 2025 financial results. The context is Pirelli’s announcement that Sinochem’s control of Pirelli ended at the April. Sinochem subsequently contested that.
In a statement published yesterday, Pirelli & C. S.p.A. responded to communication from its largest shareholder, Marco Polo International Italy. Pirelli clarified that the proposals submitted to Sinochem to overcome regulatory issues in the USA were “were exclusively and obviously – contrary to that which has been asserted – in the interests of the company and respectful of those of all shareholders.”
Yesterday Pirelli published a board-level declaration that Sinochem no longer “controls” Pirelli. However, elsewhere in Pirelli’s own statement, the company also qualified that definitive-sounding remark with the following note: “the decision regarding the absence of control of the shareholder Sinochem represents a first, but not decisive, step on the path to the necessary adjustment of company governance…”. Therefore, it was no surprise to learn that Sinochem, which holds its 37 per cent stake in Pirelli through investment vehicle Marco Polo International, sees things differently.
Pirelli’s board is expected to approve an accord on Monday to end Sinochem’s control of the tyre maker, Reuters report stating: “Chinese and Italian shareholders in Pirelli have been at odds over the group’s governance” with the upshot being that Sinochem was considered to have hindered Pirelli’s expansion in the United States.
On the evening of 27 March, Pirelli CEO Andrea Casaluci stated that “Pirelli’s management will continue to work on finding a solution that will allow the company to adapt to the new regulations of the American market, as it does in all the markets in which it operates”. That statement follows reports that Pirelli’s board is calling for Sinochem to reduce its stake in the well-known tyremaker due to fears that too close an association with China could hamper Pirelli’s international growth, especially in the USA where President Trump has fired several volleys in a trade war designed to protect US manufacturing and wider economic interests.
The board of Pirelli is calling on Sinochem, its largest shareholder, to reduce its stake in light of recent tariff announcements from President Trump. In short, the board is concerned that Trump’s unease about Chinese ownership of American assets as well as the impact of tariffs will hamper Pirelli’s growth plans. Indeed, according to various news reports including those published in Financial Times and by Reuters suggest Pirelli’s management will “demand the Chinese investor immediately cut its 37 per cent stake to less than Italian shareholder Camfin’s 26.4 per cent holding…”
Machinery manufacturer KraussMaffei reports that shareholder Sinochem recently undertook the final step in its August 2024-announced plan to convert existing shareholder loans into equity for the KraussMaffei Group’s parent company, China National Chemical Equipment (Luxembourg) S.á.r.l. (CNCE Lux). KraussMaffei Group anticipates significant benefits from this transaction thanks to an improved capital structure and financial performance.
Wang Feng has stepped down as Chairman of Aeolus Tyre Co. Ltd. On 19 July, the Sinochem Holdings subsidiary announced Wang’s resignation from this post, adding that, going forwards, he will not hold any position within the company. The Aeolus Tyre Board of Directors has elected Wang Jianjun to succeed Wang Feng as head of the tyre maker.
Aeolus Tyre Co. Ltd has dissolved its direct license contract with Pirelli Tyre S.p.A. for Industrial segment technology, replacing this agreement with one it signed with Prometeon Tyre Group S.r.l. (PTG) earlier in the month. According to the terms of the new agreement, Aeolus Tyre will receive patented and proprietary technology that Pirelli has licensed to PTG.
In 2023, China’s tyre industry experienced a number of significant changes among key personnel. Tyrepress China observes that the operations of foreign brands in China are relatively stable, with only Bridgestone China’s leaders having changed. However, several Chinese state-owned enterprises and listed companies have undergone significant personnel changes this year.
The Supervisory Board of the KraussMaffei Group has reorganised the company’s management. Chi Zhang, formerly Chairman of the Supervisory Board, is now Chief Executive Officer, effective 10 January 2024. He succeeds Yong Li, who takes on the newly created position of Chief Administrative Officer. Supervisory Board leadership now becomes the remit of Shihao Yang, who joins KraussMaffei from the top management of main shareholder Sinochem.
Three sources “close to the matter” have shared with Reuters their expectation that Sinochem Holdings will retain its stake in Pirelli despite Italy’s Golden Power Decree restrictions. One commented that China may view an exit from Pirelli as a “reputational setback” at a time of “tenser relations” with Western countries.
As reported yesterday, Italy’s government is looking to ensure tyre maker Pirelli isn’t unduly influenced by its largest shareholder. A piece of legislation named Golden Power may help to this end, and in light of activities linked to this rule, Pirelli has postponed an upcoming shareholders’ meeting.
According to people familiar with the matter, Italian officials are attempting to limit the influence Sinochem has on Pirelli. Reporting this development, Bloomberg shares that officials are speaking with Pirelli investors about a range of options related to corporate structure.
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