State-owned chemical giant China National Chemical Corporation (ChemChina), with annual revenue of almost 40 billion USD, has reached an agreement to purchase Camfin's share in Pirelli (the world's fifth-largest tire manufacturer).
The offer was launched at € 15 a share and over the next few days after the "news leak", the share value went over € 15, which moves the majority of the Italian company capital to the Far East.
If this takeover bid will be successful, Pirelli is expected to be delisted from Milan Stock exchange (Piazza Affari) in order to reorganize the company and promote a capital increase. The transaction is aimed at "guaranteeing stability, autonomy and continuity for the Pirelli Group's path to growth over time, which would maintain its headquarters in Italy". The deal would give Pirelli a value of more than 7,15 billion euros and will put the 143-year-old Italian company in Chinese hands. According to unofficial voices, Pirelli would eventually be split into two companies: Pirelli Tire (Retail) and Pirelli Truck (dedicated to industrial tires).
In case of closing, the governance is expected to remain anyway in the hands of Marco Tronchetti Provera, who will stay as CEO until 2020.