Pirelli Board Urges Sinochem to Reduce 37% Stake Amid Regulatory Concerns

Pirelli's board is urging its largest shareholder, China's Sinochem, to reduce its 37% stake in response to concerns over potential U.S. regulatory challenges and ongoing trade tensions. This pressure comes as Pirelli seeks to secure approval for its 2024 financial results amidst fears that Sinochem's influence could hinder operations in the U.S., a market from which Pirelli derives about 25% of its revenue. Italian regulators have intervened, suggesting measures to limit Sinochem's power, including a possible reduction of its voting rights. In parallel, Italian investor Camfin is increasing its stake to counterbalance Sinochem's influence, reflecting a strategic pivot among Pirelli's leadership. As the U.S. prepares to tighten restrictions on Chinese technology in the automotive sector, Pirelli is navigating the complexities of balancing foreign investment with local regulatory demands. The outcome of the board meeting is critical for shaping Pirelli's governance and operational strategy moving forward.