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

Institutional FX

CLS FX volume continues downward trend in August

Total daily traded volume submitted to CLS for settlement took yet another step back in August.

Digital Assets

Huobi taps AstroPay to facilitate fiat-to-crypto payment in Latin America

Huobi, the world’s sixth-largest crypto exchange by trading volume, has recently partnered with payment solution provider AstroPay to launch local currency account deposits and withdrawals in Latin America.

Digital Assets

Crypto exchange FTX to raise $1 billion at flat valuation of $32 billion

FTX is reportedly in discussions with a clutch of heavyweights from traditional finance to raise up to $1 billion in fresh funding to fuel more deal-making.

Digital Assets

Revolut US launches trading on Avalanche, Solana, and Dogecoin

British fintech and banking firm Revolut has further expanded its cryptocurrency offering in the US with the addition of 29 new tokens.

Digital Assets

Bahrain greenlights eazyPay to launch Binance Pay

The Central Bank of Bahrain has blessed a new partnership inked by Binance with Eazy Financial Services ‘eazyPay’, a local POS and online payment service provider. The greenlight enables EazyPayto to launch Bitcoin and cryptocurrency payments in the region.

Digital Assets

Coinbase approved to offer crypto for Dutch users

Nasdaq-listed crypto exchange operator Coinbase has been handed regulatory approval to operate as a crypto service provider in the Netherlands.

Metaverse Gaming NFT

AC Milan partners with Solana-based NFT football game MonkeyLeague

“Partnering with champions like AC Milan, an absolute iconic Club throughout footballs history, is another testament to what we are building and where we are headed as a game and game studio. It also represents a key step in our plans to bridge the Web2 and Web3 worlds.”

Digital Assets

Shariah-compliant Islamic Coin to support SDG-compliant ventures, green projects, and philanthropy

Shariah-compliant Islamic Coin has recently launched a collaboration with the World Green Growth Organization and the International Youth Conference 6, taking place on September 22-25th and September 30th-October 1st, 2022, in New York. 

Market News

Week ahead: US core PCE and eurozone CPI 

We heard from a range of central banks last week and the update sparked big moves in the markets, and the bulk of the volatility was in currencies.

<