China National Chemical Corporation (CNCC) reached an agreement with holding company Camfin which controls Pirelli with the aim of undertaking a takeover of the Italian tyremaker, local reports said on Sunday.
Shareholders in Camfin, who include Pirelli President and CEO Marco Tronchetti Provera, Russian oil group Rosneft and Italian banks UniCredit and Intesa Sanpaolo, along with CNCC are set to establish a new holding company which will launch the takeover and likely delist Pirelli from the Milan stock exchange by summer, according to Il Sole 24 Ore economic newspaper.
Il Sole 24 Ore said the agreement was confirmed in a statement released late on Sunday, according to which Pirelli is expected to double its volumes in the industrial tyres market.
Tronchetti Provera would remain CEO of the tyremaker until 2021, ANSA news agency reported.
"The agreement with CNCC represents a great opportunity for Pirelli," Tronchetti Provera was quoted by ANSA as saying. CNCC's approach to business and strategic vision, he added, will ensure the development and stability of Pirelli.
Sunday's agreement was the latest in a series of acquisitions by Chinese investors in Italy in recent years.
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