Pirelli to Limit Sinochem’s Control Amid U.S. Expansion Plans

Pirelli’s board is expected to approve a new agreement on Monday that limits China’s Sinochem from exercising control over the Italian tire maker, according to a report by Il Messaggero. The move comes as tensions between Chinese and Italian shareholders have threatened Pirelli’s ambitions for U.S. market expansion.

Under the agreement, Sinochem will maintain its 37% stake in Pirelli but will no longer be recognized as having regulatory control over the company. The pact reportedly clarifies that Sinochem does not exert dominant influence over governance decisions, which are managed independently by Pirelli’s executives.

The dispute between shareholders had delayed the company’s 2024 financial report, originally scheduled for late March, pushing the board meeting to Monday. Pirelli had also paused further U.S. investments earlier this month to address concerns about Sinochem’s role as its main shareholder.

Both Pirelli and Sinochem have not yet commented publicly on the reported agreement.

The development is significant as Pirelli seeks to boost its global growth while navigating political sensitivities tied to foreign ownership, particularly in strategic markets like the United States. By redefining Sinochem’s role, Pirelli aims to remove regulatory hurdles and strengthen its expansion plans.