The Chinese of Cnrc present a proposal for Pirelli. Camfin: it does not solve the problems

China National Tire & Rubber Corporation, the Sinochem subsidiary to which the stake in Pirelli belongs, 'presented a structured solution supported by solid grounds, based on typical and widely used corporate tools, in line with international best practices, with the aim of resolving both Pirelli's governance framework and any critical issues related to US regulatory requirements'. The group announced this in a note. CNRC 'sincerely hopes that such a constructive proposal can be evaluated neutrally with a real spirit of cooperation'.

CNRC, which has sent its proposal to Pirelli itself and to the other shareholder Camfin, "will support any institutional, transparent and fact-based evaluation process" it stresses and "reiterates its full willingness to conduct discussions in good faith with the interested parties, in order to identify solutions that are consistent with a market approach and sustainable, in the interest of Pirelli, its shareholders, its employees and its long-term industrial development in any international market".

Camfin rejects the Chinese proposal for a solution: 'it would be detrimental to Pirelli's business model and the company's technological development,' writes the Italian partner. "Moreover, such a proposal would not allow Pirelli, in any case, to be in line with the US regulations on connected vehicles". Camfin, too, "put forward a proposal in the interest of all stakeholders and the company, and which would have allowed Pirelli to align with US regulations with certainty" and "reiterates its willingness to discuss solutions in the interest of the company, the market and all stakeholders".

Spinning off Pirelli's cyber tyre business into a new entity in which there would be no Chinese presence. This would be - according to reports - the focus of the proposal by Cnrc, the subsidiary of Sinochem, Bicocca's largest shareholder, to overcome the criticalities relating to American regulations that prohibit the sale or import of connected vehicles that use hardware or software from companies linked to countries such as China and Russia.