Pirelli, government opens proceedings on Golden Power violation

Palazzo Chigi has put Cnrc, Pirelli's Chinese partner, under scrutiny for a possible violation of 'golden power'. The Italian government, Pirelli has announced, has initiated an administrative procedure for the possible violation of 'golden power' by the Chinese partner China National Tire and Rubber Corp. (Cnrc). In a note, the Bicocca-based group informed the market that Marco Polo International Italy ('MPI'), also on behalf of Cnrc, had sent Pirelli a copy of the order of 31 October 2024 notified to Cnrc by the Prime Minister's Office. In practice, the government 'decided to initiate administrative proceedings for the possible violation by Cnrc of the provisions contained in the dpcm of 16 June 2023 with which the special powers of golden power were exercised'. In particular, the note states, 'the proceedings concern the potential violation of the requirement to ensure the absence of organisational-functional links between Pirelli on the one hand and Cnrc on the other'.

According to what has been reconstructed in financial circles, the object of the measure would be the double role of some Pirelli directors who would also hold managerial roles in companies controlling the Pirelli group. A double role that, precisely, would now be under scrutiny by the administrative measure underway.

Palazzo Chigi has set the deadline for the conclusion of the proceedings at 120 days from the date of notification of the measure. Cnrc has informed Pirelli that it "believes it has always complied with the requirements of the Golden Power Dpcm and is confident that it will clarify its position during the proceedings," the note reads. The new 'dossier' comes after important changes in the balance of the Bicocca group. After the exit of Brembo, which completed the sale of its 5.58% shareholding, Camfin and Mtp strengthened their holdings in the tyre group's capital, announcing their intention to rise to 29.9%. All this while the Pirelli board of directors is still considering the issue of consolidating the 37% stake in the Italian group held by the Chinese partner, ChemChina, after the governance constraints linked to Golden Power. A dossier, that of control, which in all probability will be closed by the end of the year. The Camfin-Mtp system today holds 25.7% of Pirelli's capital. The plans, however, appear even more ambitious. On paper, Brembo's exit could therefore have weakened the Italian front, which acts as a counterbalance to the Chinese shareholder ChemChina, which owns 37% of Pirelli. This was not the case. On the contrary. Camfin's latest purchases, but above all the holding company's desire to reach 29.9% of Pirelli's capital, offset the disengagement of Alberto Bombassei's group.