China’s Sinochem says it has proposed a “structured solution” to end a long-running governance dispute at Italian tyre maker Pirelli, as Rome considers whether to limit Chinese influence in the company to protect national interests and support Pirelli’s US expansion.
Sinochem, which holds a 34.1% stake in Pirelli, said its proposal is designed to align with international governance standards while addressing concerns linked to regulatory scrutiny in the United States. The company did not publicly disclose the full details of the plan, but positioned it as a framework that could be evaluated by all parties involved.
The dispute has intensified as Camfin — the Italian investment vehicle that owns 25.3% of Pirelli — prepares to increase its stake to 29.9%. Camfin has also moved to end its shareholder agreement with Sinochem, escalating the standoff over control and board influence.
Camfin previously said: “It was not possible to find solutions with Sinochem to adapt company’s governance to U.S. regulatory requirements,” underlining the friction over how the company should be structured as it seeks to expand in the US market.
The standoff has been unfolding under the shadow of Italy’s “golden power” rules, which allow the government to step in when strategic assets are considered sensitive to national security. Officials have been assessing options that could curb Sinochem’s influence, including potential changes to voting rights or governance arrangements.
Pirelli’s US growth ambitions are seen as a key pressure point, as Washington has increased scrutiny of companies where Chinese stakeholders have significant influence, particularly in sectors linked to automotive technology and supply chains.
For Sinochem, the goal appears to be finding a governance configuration that reduces political and regulatory risk without forcing a major restructuring of its investment. For Pirelli and Camfin, the focus is on building a structure that avoids foreign influence concerns while keeping the company competitive in global markets.