Pirelli, the world’s fifth-biggest tyre maker, is to be bought by China National Chemical Corp (ChemChina) in a 7.1 billion euro (RM28.6 billion) deal, according to various reports.
State-owned ChemChina has reportedly agreed to pay 15 euro (RM60.37) a share for the 26.2% of Pirelli owned by Cam Finanziaria, the Italian company’s largest investor. For the remaining stake, a public tender is set to be made at the same price.
If all goes well, the deal will open the doors to premium tyre technology for ChemChina (which has a tyre-making unit called China National Tyre & Rubber), whilst giving Pirelli a boost in China and Asia, where competitors such as Michelin and Continental are seeking growth.
ChemChina is contemplating taking Pirelli private – the headquarters will remain in Milan, while the company may be re-listed in four years. Pirelli’s less profitable truck and industrial tyre business, however, is set to be folded into AEOLUS, a listed unit of ChemChina.
According to Thomson Reuters data, this is China’s fifth-biggest outbound deal by a state-owned enterprise. Following a hiatus prompted by president Xi Jinping’s anti-graft crackdown, state-owned enterprises are returning to global deal-making in full force.
Financial sector aside, Italy is the second-biggest European acquisition market for China and the fifth-largest globally – no fewer than 10 deals have been completed since the start of 2014. Very powerful, but then again, power is nothing without control.
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So F1 runners finally have a good reason to blame why the tyres cannot last. Becoz its China…
China is so rich, their are the boss for the future.
Wah, China can pay so much for Pirelli. What about our kentut Malaysian tyre companies? You think China or some other investor will pay RM28 billion for our simex kentut tyres that always burst and tear for the slightest pothole?
Quality of product these day dropping because of China, this another one that going to a decaying quality the same many more, don’t buy if just to get the name, anyway it a dying Tyre company. May be it going to to buried properly in China.
May Pirelli rest in pieces..
Someone please buy Proton so all Malaysians suffer less.
1-Euro?
China please buy Proton and more Chinese buy Proton Car. Ha Ha Ha
today malays also don’t want to by proton. but you got guts to say other race? please go outside and see how many malays driving non-national cars everyday and don’t just be like a katak bawah tempurung.
70% of malaysia population is malays so their buying power is not weak but you can see proton sales dropping constantly. who say malays only sit proton?
Yes, you are right. Malays are smart nowadays. That’s why they won’t get conned by stupid slogan like “Betul2 OnZ”.
I just sold 2 Altis to Malays yesterday, they knew they make the right choice.
Our quality expectation is very high, Proton car quality is way below our expectation, so sorry we have no interest in Proton.
Johor already sold land and sea to the China Developer lorr…
The 2016 calendar will feature lenglui instead..
China company, please..please buy stakes in 1MDB now.
How much we hope they naive enough so that they would buy up 1MDB. Btw China people is getting smarter in recent decades and reason they getting rich because of their strategic plan. So they won’t look up 1MDB definitely.
Don’t be surprised if one day China bought over Microsoft and Buffets companies.
my question…why pirelli shareholders would want to sell the company when it is making money? Maybe they see reclining profits in near future so better cabut now? perhaps pirelli owners think better me selling to China than China buys my competition like bridgestones or goodyear and make my life miserable?
one of the key factor China bought over Pirelli is because of the imagine and reputation. Overall when people heard the China “local brand” product people will stop and think twice. For example, XXX China Phone vs Sxmsung made from China. Both sharing exactly same spec or even OS but people will rather pay more to Sxmsung despite they are from same factory and same manufacturing lineup.
So after bought Pirelli people from oversea will start thinking China may able to make good tyre in future. This will benefit many China local tyre brand and promote it at oversea market. This is strategy.
Next year the name will be change also; “PILERRI”.
M007.
The very reason why they have offered an equity stake to a foreign partner is because they see value.
Imagine the amount of business and market penetration in China?
On top.of that,a 26% shareholding will still ensure that they still maintain management control.
The new cash will also make its books healthy & be used as working capital.
This is called vision or foresight which only makes the co. Stronger !!
after this nobody will dare to buy pirelli tyres. Becoz u know right china is world number 1 fake things producers….
If you continue to keep you thought like this, you will lack behind further. No doubt in the past China counterfeit other brand or make fake product, but it is much different now where some local China companies are so rich and they able to acquire foreign companies. After acquire they will take the technology and use it in their own product while this acquisition will increase the market share which is significant to them.
Now China tyre still not in global top 10 but after this acquisition complete China tyre will become top 5 or even higher. Another key factor is Pirelli was the most premium brand among all tyremakers. This will give an impression to people China can make premium tyre in future.
We can start seeing China going to involve and want to conquer certain industry simply because they are too rich. Sigh…