Published by Global Banking & Finance Review®
Posted on April 26, 2025
2 min readLast updated: January 24, 2026
Pirelli's board is set to declare that Sinochem no longer controls its governance, affecting US expansion plans amid shareholder tensions.
MILAN (Reuters) -Pirelli's board is expected to approve on Monday an accord between shareholders to establish that the group's largest investor, China's state-owned Sinochem, does not exercise control over the tyre maker, an Italian daily said.
Chinese and Italian shareholders in Pirelli have been at odds over the group's governance, with Sinochem posing a hurdle to Pirelli's U.S. expansion ambitions.
Under an agreement reported by Il Messaggero newspaper, while Sinochem will retain its 37% stake in Pirelli, it will no longer be considered as having control of the company for regulatory purposes.
The agreement would declare that Sinochem holds no dominant influence over the company's governance, given that decisions are taken by the management, Il Messaggero reported.
Pirelli and Sinochem were not immediately available to comment.
Pirelli earlier this month said it had put on hold plans to invest further in the United States as it tried to smooth out tensions linked to having Sinochem as its largest investor.
Pirelli's board meets on Monday to approve the company's financial report for 2024. Initially scheduled at the end of March, the board meeting was postponed by a month amid protracted tensions between leading investors.
(Reporting by Valentina Za and Giulio Piovaccari; Editing by Aidan Lewis)
Chinese and Italian shareholders in Pirelli have been at odds over the group's governance, with Sinochem posing a hurdle to Pirelli's U.S. expansion ambitions.
The agreement states that while Sinochem will retain its 37% stake in Pirelli, it will no longer be considered as having control of the company for regulatory purposes.
The board meeting was postponed by a month amid protracted tensions between Pirelli and its largest investor, Sinochem.
The agreement would declare that Sinochem holds no dominant influence over the company's governance, as decisions are taken by the management.
Pirelli earlier this month stated it had put on hold plans to invest further in the United States due to tensions linked to having Sinochem as its largest investor.
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