Published by Global Banking & Finance Review®
Posted on April 13, 2026
3 min readLast updated: April 13, 2026
Add as preferred source on GoogleSinochem, holding about 34% of Pirelli, may legally challenge Italy’s ‘golden power’ curbs limiting its governance rights—including board representation and access to sensitive data—as Rome seeks to safeguard strategic autonomy amid US tech restrictions.
By Giuseppe Fonte and Giulio Piovaccari
ROME, April 13 (Reuters) - Chinese state-owned company Sinochem said on Monday it may lodge a legal appeal against curbs set by Italy's government last week to limit its influence over Pirelli, escalating a long-running governance spat affecting the Italian tyre maker.
Among the terms set under golden power rules nL1N40T0SU designed to preserve national interests in corporate matters, Italy cut the number of representatives Sinochem can name to Pirelli's next board to three from eight, in an effort to avoid U.S. restrictions on the Italian group.
"The company expresses its deep regret regarding this decision and reserves the right to pursue all necessary legal remedies to safeguard its legitimate shareholder rights and interests," Sinochem said in a statement issued by its unit, Marco Polo International Italy.
PIRELLI PLANNING U.S. EXPANSION
Sinochem, which produces and trades chemicals and fertilisers, is Pirelli's largest shareholder with a 34% stake. Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, holds around 26%, with plans to increase it to up to 29.9%.
Both Pirelli and Camfin have called for restrictions on Sinochem, saying that its ownership position complicates Pirelli's expansion plans in the U.S., as Washington tightens restrictions on Chinese technology in the automotive sector.
The U.S. is a key market for Pirelli's premium tyre business.
Italy barred Sinochem representatives from holding top corporate roles such as chairman or chief executive, while also requiring Pirelli to withhold sensitive information from its Chinese investor.
"Such measures are discriminatory and will inevitably have a negative impact on Italy's investment climate," Sinochem said.
The curbs will remain in force as long as Sinochem retains a stake in Pirelli above 9.99%, a sign that Rome wants Sinochem to cut its shareholding.
Reuters reported last year that Sinochem was ready to assess offers with a market premium from potential bidders for all or part of its Pirelli stake.
One of the new prescriptions requires Sinochem to notify the government of any share transfer, which must not be made in favour of entities affiliated with or controlled by the Chinese government.
Italy has progressively adopted over the last few years a harder line on Chinese forays into its companies due to security reasons.
(Reporting by Giuseppe Fonte in Rome and Giulio Piovaccari in Milan, editing by Gavin Jones, Rod Nickel)
Sinochem may appeal due to Italy's government imposing curbs to limit its influence as Pirelli’s largest shareholder.
Sinochem is Pirelli's largest shareholder with a 34% stake.
Camfin, the vehicle of Marco Tronchetti Provera, currently holds around 26% with plans to raise it to 29.9%.
Sinochem is considering all necessary legal remedies, including potentially lodging a legal appeal in court.
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