The deal, agreed with Pirelli's top shareholders on Sunday, is the latest in a series of takeovers in Italy by cash-rich Chinese buyers taking advantage of a weak euro just as Europe is slowly emerging from economic stagnation.
The bid for Pirelli marks a return of China's state-owned enterprises to global dealmaking, following a hiatus caused by President Xi Jinping's anti-graft crackdown that targeted several current and former senior officials at state companies.
Currently Pirelli is owned by Italian holding company Camfin's investors, two Italian banks (UniCredit and Intesa Sanpaolo) and a Russian oil company, Rosneft.
Rosneft bought a 50 percent stake in Camfin a year ago, before the onset of the Russian economic crisis.
The new Chinese owners will pick a chairman. Tronchetti Provera, who started working at the tire maker in 1986 after marrying a member of the Italian family that founded Pirelli, will remain chief executive.
For 2014 they were 1 billion Euro in debt, and selling out will net them 7 billion Euro for the stock owners to split after getting the company out of debt (is my understanding).
http://www.reuters.com/article/2015/03/23/us-pirelli-chemchina-idUSKBN0MI0PQ20150323
http://bangshift.com/general-news/pirelli-makes-takeover-deal-with-chemchina-for-e7-1-billion-what-does-it-mean-for-the-tire-manufacturer/
The bid for Pirelli marks a return of China's state-owned enterprises to global dealmaking, following a hiatus caused by President Xi Jinping's anti-graft crackdown that targeted several current and former senior officials at state companies.
Currently Pirelli is owned by Italian holding company Camfin's investors, two Italian banks (UniCredit and Intesa Sanpaolo) and a Russian oil company, Rosneft.
Rosneft bought a 50 percent stake in Camfin a year ago, before the onset of the Russian economic crisis.
The new Chinese owners will pick a chairman. Tronchetti Provera, who started working at the tire maker in 1986 after marrying a member of the Italian family that founded Pirelli, will remain chief executive.
For 2014 they were 1 billion Euro in debt, and selling out will net them 7 billion Euro for the stock owners to split after getting the company out of debt (is my understanding).
http://www.reuters.com/article/2015/03/23/us-pirelli-chemchina-idUSKBN0MI0PQ20150323
http://bangshift.com/general-news/pirelli-makes-takeover-deal-with-chemchina-for-e7-1-billion-what-does-it-mean-for-the-tire-manufacturer/
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