MILAN (Reuters) - Chinese chemicals group ChemChina has committed to retaining its major stake in tyre-maker Pirelli (PIRC.MI) until 2023, extending a shareholder agreement that ensures it and allied investors maintain control of the Italian firm.
Earlier this year rumours spread over a possible decision by state-owned ChemChina to cut its stake, but Pirelli’s Chief Executive Marco Tronchetti Provera dismissed them as pure speculation.
He later said Pirelli’s top shareholders, including Chinese state-owned Silk Road Fund and Italian investment vehicle Camfin, were in talks to renew their current agreement, which had been scheduled to expire in spring next year.
Under the new agreement, Tronchetti Provera, one of Italy’s best known business leaders, will continue to head Pirelli and help designate his successor by October 2022, Camfin and ChemChina said in a joint statement on Tuesday.
Since Pirelli went public again in 2017 after having delisted in 2015, ChemChina and Silk Road Fund, jointly hold about 45.5% in the company while Camfin holds about 10%.
Reporting by Giulio Piovaccari; Editing by Mark Bendeich/Keith Weir