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Italy Reviewing Pirelli Ownership Structure

FILE - A Pirelli tire is pictured in the paddock at the Jeddah Corniche Circuit in Jeddah, Saudi Arabia, March 16, 2023. (Photo by Giuseppe Cacace/ AFP)

Italian regulators are looking into efforts by China's Sinochem to tighten control over Italian tire maker Pirelli.

Sinochem owns 37% of Pirelli and a new shareholders agreement gives it the ability to choose nine members of Pirelli's 15-member board.

Pirelli CEO Marco Tronchetti Provera sold the 150-year-old company to ChemChina in 2015. ChemChina is now part of Chinese state-owned chemical company Sinochem.

The Italian government has the ability to review such matters under what are called "Golden Powers" — rules governing assets considered strategic to the country.

The probe comes amid concern by Western governments about China's influence and potential interference by the government in business affairs.

Some information for this report came from Reuters