Italy’s Pirelli says Chinese control over

AFP | Rome

Email : editor@newsofbahrain.com

The board of Italian tyre firm Pirelli said Monday that Chinese control over the company, which imperilled its sales in the United States, had ended following the government exerting national security measures.

The Italian government of Prime Minister Giorgia Meloni had issued a so-called golden power share that allows it to block foreign control over strategic assets, and Monday’s board meeting formally took the development into account.

The board approved a report acknowledging “the issuance of the DPCM Golden Power, the control of MPI Italy (and, therefore, of Sinochem) over Pirelli has ended pursuant to” international accounting principles, the company said in a statement. Pursuant to those accounting rules Pirelli “is not subject to the control of any entity.”

MPI Italy is Sinochem’s Italian holding company, and it had controlled Pirelli along with another investor since buying a 37 percent stake in 2015 in a 7.1 billion euro ($8.1 billion at the current exchange rate).

Pirelli’s effective control by Sinochem put its connected tyres afoul of regulations adopted by the Biden administration that banned Chinese and Russian equipment and technology from connected vehicles due to national security concerns.