Italy has approved measures to limit the control of a Chinese state-owned shareholder over the Italian tiremaker Pirelli, citing reasons of national security.
Rome’s decision comes after Sinochem, Pirelli’s largest shareholder with a 37 percent stake, notified the Italian government in March of plans to update an existing shareholder pact with Camfin, which is controlled by Pirelli CEO Marco Tronchetti Provera.
Camfin is a holding company with its main investment being a 14 percent stake in Pirelli.
The decision is a rare intervention in an eight-year-old investment by the Chinese regime. In 2015, the regime’s chemical group ChemChina bought a majority stake in Pirelli, considered one of the biggest Italian companies, for $7.7 billion….