TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Pirelli to be bought by ChemChina in $7.7 billion deal

Discussion in 'Cars and Transportation' started by RobStark, Mar 23, 2015.

  1. RobStark

    RobStark Well-Known Member

    Jul 2, 2013
    Los Angeles
    MILAN (Reuters) -- China National Chemical Corp. (ChemChina) will buy Pirelli, the world's fifth-largest tire maker, in a 7.1 billion euro ($7.7 billion) deal that will place one of the symbols of Italy's manufacturing industry in Chinese hands.

    The deal will give state-owned ChemChina, led by acquisitive chairman Ren Jianxin, access to technology to make premium tires, which can be sold at higher margins, and give the Italian firm a boost in the huge Chinese market.

    In turn Pirelli, whose tires equip cars in Formula One motor racing, would have more bandwidth to compete against larger rivals such as Michelin and Continental which are looking for growth in Asia.

    The deal was agreed with Pirelli shareholders on Sunday. ChemChina agreed to pay 15 euros a share for the 26.2 percent of Pirelli owned by Cam Finanziaria, or Camfin, the companies said in a statement. ChemChina will then make a public tender offer for the rest of the tiremaker at the same price. The bid price, which values Pirelli at about 7.1 billion euros, is below Friday's closing price of 15.23 euros.


Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.