Published by Global Banking & Finance Review®
Posted on January 6, 2026
3 min readLast updated: January 20, 2026
Add as preferred source on GoogleItaly considers limiting Sinochem's role in Pirelli to aid U.S. expansion, possibly freezing voting rights or selling Sinochem's stake.
By Giulio Piovaccari and Elvira Pollina
Jan 6 (Reuters) - Italy is weighing measures to make China's Sinochem a passive shareholder in Pirelli, including freezing its voting rights, as part of efforts to back the tyremaker's U.S. expansion, two sources familiar with the matter said.
Reuters was first to report in September that a sale of Sinochem's 34% stake in Pirelli was among options under consideration as Italy worked with the tyremaker to address concerns that a Chinese shareholder could hinder Pirelli's U.S. expansion ambitions.
Rome has used special powers it has to shield assets deemed of strategic national relevance to help Pirelli to address a governance dispute that has pitted Sinochem against fellow investor Camfin, the group's second-largest shareholder.
Pirelli and Camfin have complained that having a Chinese company as its main shareholder hampered U.S. expansion as Washington tightened restrictions on Chinese technology in the automotive sector.
ROME'S GOLDEN POWER
While a sale of the holding remains an option, Italy does not rule out using its so-called golden power to limit Sinochem's shareholder rights, the two sources said.
Pirelli declined to comment. The economy and industry ministries did not immediately respond to Reuters requests for comment.
A passive shareholder retains economic rights but typically has no voting rights or any power to influence strategic decisions.
Sources told Reuters in September that Sinochem was open to considering bids for its stake, provided they came with a premium.
Sinochem has since hired BNP Paribas to advise on a possible sale, one of the two sources added. Reuters was not able to reach a BNP representative for immediate comment.
EFFORTS TO FIND A SOLUTION
Industry Minister Adolfo Urso expressed confidence in October that shareholders in Pirelli would find a solution, with full government support, for the company to be able to operate at its best in its most significant and promising markets, starting with the U.S.
In December, Urso said Pirelli's Italian and Chinese shareholders had resumed talks to reach a solution, thanks to the government's efforts to promote dialogue.
Pressure to find a solution is rising ahead of new U.S. rules from March that will restrict the use of Chinese technology in vehicles sold in the United States, while a shareholder agreement between Camfin and Sinochem expires in May.
The Financial Times first reported on Tuesday that Pirelli and Italy were exploring new ways to end Chinese state-owned involvement in Pirelli.
(Writing by Valentina Za; Additional reporting by Bipasha Dey in Bengaluru; Editing by Harikrishnan Nair and Emelia Sithole-Matarise)
Corporate governance refers to the systems and processes that direct and control a company. It involves the relationships among stakeholders and the goals for which the corporation is governed.
A passive shareholder is an investor who holds shares in a company but does not participate in its management or decision-making processes, typically having no voting rights.
A governance dispute occurs when there are disagreements among shareholders or management regarding the control and direction of a company, often affecting its operations and strategy.
A stake in a company refers to the ownership interest held by an individual or entity, typically represented by shares of stock. It signifies the level of investment and potential influence in the company.
U.S. expansion refers to the efforts of a company to grow its operations, market presence, or sales within the United States, often involving strategic planning and investment.
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