The future of Pirelli is under the spotlight, between institutional investigations and new shareholder balances that could revolutionize the governance of the tire giant. The latest chapter of this story sees Palazzo Chigi working on a delicate dossier linked to the so-called Golden Power, the special powers that Italy exercises over companies that are strategic for national security. The China National Tire and Rubber Corp. (Cnrc), the Chinese partner of Pirelli through the vehicle Marco Polo International Italy (Mpi), is now under investigation for an alleged violation of these prescriptions. But let's take a step back.
Pirelli under the Golden Power shield
On 15 June 2023, the Italian government, on the proposal of the Ministry of Enterprise and Made in Italy, has implemented the Golden Power to closely monitor Chinese participation in Pirelli. The motivation? To protect strategic technologies, in particular Cyber sensors implantable in tires, key elements for innovation and competitiveness in the sector.
The measure has imposed some strict rules: first of all, that Pirelli is not under the “direction and coordination” of foreign shareholders. Furthermore, the CEO of Pirelli must be chosen from the majority list, with the name indicated by Camfin, the Italian holding company that controls a significant part of the group. Another important point: out of 12 directors to be appointed, 4 must be chosen by Camfin. A strategy designed to ensure that, while remaining a global giant, Pirelli remains firmly in Italian hands.
The Government's protest: focus on the "connections" between Pirelli and the Chinese
Now the government is ready to evaluate whether, in reality, these requirements have been respected. The Presidency of the Council of Ministers has opened an administrative proceeding to verify the links between the Bicocca group and Cnrc, fearing that some board roles could compromise the company's independence.
The alarm bells are ringing because of theinterweaving of roles which involves i Group leaders. First of all, that of Jiao Jian, president of Pirelli since 2021 and also director and president of Sinochem Holdings, the Chinese giant that controls, through Cnrc, a significant portion of the shares of the tire giant. A double role that could violate the provisions relating to autonomy and independence that the Italian government wanted to guarantee through the Golden Power. The investigation, launched on October 31, 2024, must be completed within 120 days, but the results could have significant implications for the governance and control of the company.
The new balances: Camfin and Mtp in the running
Meanwhile, inside Pirelli the Italian shareholders, with Camfin and Mtp pushing to increase their influence in the group's share capital. The group has seen Brembo's exit, which sold its 5,58% stake, but those gaining ground were Camfin and Mtp, two of the main Italian companies that, after the exit of Alberto Bombassei's group, increased their share in Pirelli.
Currently, the Camfin-Mtp system controls 25,7% of Pirelli, but the goal seems to be even more ambitious. The holding has in fact demonstrated the intention to rise to 29,9%, a level that could give them an even stronger strategic grip on the company. However, this does not mean that the game is over. The Chinese of ChemChina, the main shareholder of Pirelli with 37%, are not willing to give ground.
