Chinese company acquire Pirelli in a deal for 7.1 billion EUR

Noam Stiekema

Chinese company acquire the Italian tire manufacturer Pirelli in a deal for 7.1 billion EUR. The Chinese state-controlled corporation The China National Chemical Corporation (ChemChina) announced Sunday that it will attempt to acquire rival German Continental. Tires division of the Chinese corporation will initially take a share of 26.2%, the investor Cam Finanziaria SpA (Camfin) […]

ChemChina

ChemChinaChinese company acquire the Italian tire manufacturer Pirelli in a deal for 7.1 billion EUR. The Chinese state-controlled corporation The China National Chemical Corporation (ChemChina) announced Sunday that it will attempt to acquire rival German Continental. Tires division of the Chinese corporation will initially take a share of 26.2%, the investor Cam Finanziaria SpA (Camfin) held by Pirelli. So far Camfin was the largest shareholder in Pirelli.

According to a joint statement the two companies have agreed on a purchase price of 15 EUR per share. Chinese company intends to make an offer for the rest of the traditional Italian company after the transaction. The other shareholders will be offered 15 EUR per share. This is slightly less than the closing price of 15.23 EUR per share of Pirelli at the end of the week on Friday. A successful transaction would be the largest transaction for the acquisition of a Chinese company in Italy. With the acquisition ChemChina, state-owned company headquartered in Beijing, will have access to technology for the production of premium tires. Pirelli in turn can expect a greater presence in the growing Chinese market.

Under the proposed agreement Pirelli will maintain its headquarters in Italy, and the shares will be held by the newly formed Italian company that will be controlled by unidentified partners, said Camfin. Camfin is majority owned by the Russian oil company “Rosneft” and the holding company of the Chairman of the Board of Directors of Pirelli Marco Provera. Russian giant “Rosneft” bought 13% of shares of Pirelli in March 2014, after the shareholders of the Italian company announced its intention to reorganize its investments. Among other shareholders are banks Intesa Sanpaolo and Unicredit.

Chemchina, known as China National Chemical Corp, is one of the largest industrial companies in the Asian country. Chemchina, which also has a tire factory, promised to support the expansion of global presence of Pirelli – the fifth largest tire supplier in the world. Europe is considered to be an attractive market for potential purchases because of the relatively low value of the euro at the moment and because of that Chinese companies face less political resistance in large transactions compared with the US.

Read this next

Digital Assets

TON Foundation teams up with HashKey on fiat access for Telegram Wallet

The TON Foundation, a collective of developers behind The Open Network (TON) blockchain, has entered into a strategic partnership with digital asset financial services firm HashKey Group.

blockdag

BlockDAG aka Kaspa’s Toughest Competitor Releases DAGpaper, Lightes Up The Las Vegas Sphere Pulling Shiba Inu Investors & Amassing $16.4M in Presale

BlockDAG, emerging as a Kaspa competitor, unveils its DAGpaper, spotlighting the Las Vegas Sphere and captivating Shiba Inu investors with a $16.4M presale success.

Fundamental Analysis

Global FX Market Summary: USD, ECB, Gold, Oil  April 12 ,2024

A strong US economy, cautious Fed policy compared to Europe, and safe-haven demand are all fueling the surge of the US Dollar.

Digital Assets

Thai crypto exchange Bitkub eyes $3 billion valuation

Thailand’s largest cryptocurrency exchange Bitkub is gearing up for a public offering next year with a potential valuation of up to $3 billion, according to Bitkub Capital Group CEO Jirayut Srupsrisopa.

Technical Analysis

GBPUSD Technical Analysis Report 12 April, 2024

GBPUSD currency pair can be expected to all further toward the next support level 1.2400, target price for the completion of the active minor impulse wave.

Market News

Navigating Currency Trends: Extensive Analysis on EUR/USD Signal

Traders Union provides comprehensive daily analysis and signals for EUR/USD.

Retail FX

Axi extends sponsorship of Brazilian Esporte Clube Bahia

Forex and CFD broker Axi has just announced they’re extending their sponsorship with Brazilian Serie A team Esporte Clube Bahia into the 2024 season.

Digital Assets

Binance-backed Gopax narrows losses amid strong crypto trading

Binance-backed cryptocurrency exchange Gopax reported lower net losses for 2023, according to its parent company Streami’s year-end financial report.

Chainwire

99Bitcoins Launches Learn-To-Earn Presale and Raises $150K On First Day

99Bitcoins, established in 2013, has recently begun its token presale in an effort to harness the current upward trend in Bitcoin’s value. The 99BTC team, seizing this opportunity, offers its learn-to-earn platform, a longstanding resource in cryptocurrency education.

<