Italy has initiated an administrative procedure against China's Sinochem, the primary shareholder in Italian tire manufacturer Pirelli, over potential violations of regulations aimed at safeguarding national strategic assets. Pirelli disclosed that the procedure was triggered under the 'golden power' provisions, which entail limitations on access to certain information and higher voting thresholds for crucial decisions, invoked by the Italian government in mid-2023.
Sinochem, holding a 37% stake in Pirelli, has refuted any breaches of the restrictions, asserting that the Italian authorities have 120 days to reach a conclusion. The government invoked the golden power provision citing the significance of sensors embedded in tires capable of gathering data on road configurations, geolocation, and infrastructure conditions, deeming it a 'critical technology of national strategic importance.'
Pirelli's second-largest investor, Camfin, the investment entity of Pirelli's former CEO and current executive vice-chairman Marco Tronchetti Provera, possesses a 32.4% stake in the company.
