Published by Global Banking & Finance Review®
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleItaly will decide by September whether to sanction Pirelli's Chinese shareholder Sinochem, affecting the company's US expansion plans.
ROME (Reuters) -Italy will decide by September whether to sanction Pirelli's Chinese shareholder Sinochem for breaching rules Rome imposed to curb Beijing's influence over the tyremaker, people familiar with the matter told Reuters.
The government probe risks exacerbating a spat between Pirelli, its leading Italian shareholder Camfin and Sinochem, with the first two claiming that China's substantial holding poses a risk to the group's ambitions to expand its business in the United States.
Sinochem declined to comment while Pirelli was not available for comment.
Prime Minister Giorgia Meloni's government was due to decide by July 31 but has extended the deadline to complete its scrutiny of the case by 60 days until end-September, the sources said, asking not to be named.
The government, which has ruled that Pirelli must not take instructions from the Chinese investor, launched an investigation in November last year to check whether the presence of its executives on the tyremaker's board was in breach of these curbs.
Sinochem is Pirelli's largest investor with a 37% stake, while Camfim, the vehicle of veteran Italian businessman Marco Tronchetti Provera, holds 27.4%.
Tronchetti Provera, who has been Pirelli's top boss for more than three decades, is lobbying the government to take further action to limit Chinese influence over the company, Reuters reported in June.
(Reporting by Giuseppe Fonte, additional reporting by Giulio Piovaccari, editing by Gavin Jones)
Corporate governance refers to the systems, principles, and processes by which a company is directed and controlled, ensuring accountability and transparency in its operations.
Compliance is the process of adhering to laws, regulations, guidelines, and specifications relevant to a business or organization, ensuring ethical conduct and legal accountability.
Financial stability is a condition where the financial system operates effectively, allowing for the smooth functioning of financial markets, institutions, and the economy as a whole.
An investigation in finance typically involves a thorough examination of financial records and practices to ensure compliance with laws and regulations, often triggered by suspected irregularities.
A shareholder is an individual or institution that owns shares in a company, entitling them to a portion of the company's profits and a say in corporate governance.
Explore more articles in the Finance category
