In a first step, the China National Chemical Corporation (ChemChina) secured 26.2 percent of the shares for nearly 1.9 billion euros, as the company on Monday in Beijing announced. The packet was bought from the majority shareholder Camfin. The price per share was 15 Euros, which will now also all other Pirelli shareholders.
If I am successful ChemChina with the bid through its wholly-owned subsidiary of China National Tire and Rubber Company (CNRC), would the rated fifth largest tire manufacturer in the world in the transaction total of 7.1 billion euros. It could be one of the largest entrances of a state-owned Chinese company abroad.
The Italians are hoping that the new major shareholder better access to the Asian market. So the business with truck tires should be merged with parts of ChemChina and so the volume can be doubled in the range from 6 million to 12 million tires.
had Shares in the traditional tire manufacturers because of the speculation about a possible offer skyrocketed in recent weeks. They reached the highest level since early 2002. On Friday, the Pirelli shares ended trading at 15.23 euros, slightly above the offer price of the Chinese.
ChemChina is a large Chinese industrial group with exports to 140 countries , While Pirelli gaining more access to the largest automobile market in the world in China, the cooperation ChemChina could open up new opportunities in the European market. Its president Ren Jianxin said to want to create a global market leader in the tire industry.
Pirelli has a turnover of more than six billion euros and a network in 160 countries. “The agreement with ChemChina is a great opportunity for Pirelli,” said its chairman Marco Tronchetti prover, which will remain CEO of the company. “The business approach and the strategic vision guarantee the development and stability of Pirelli.”
The central element of the agreement is the continuing autonomy of the current management structure of the Pirelli Group, announced majority owner Camfin. Seat and know-how of Pirelli remained in Italy. The deal should be completed by the summer. Experts pointed out that the two competitors Pirelli, Continental and Michelin want to expand their business in Asia and for seeking acquisitions.