Pirelli tires under the control of the Chinese state-owned enterprises

MILAN [News Agencies] --- Chinese company reinforces its fangs in the global arena. Latest China National Chemical Corp (ChemChina) bought the fifth largest tire manufacturer in the world, Pirelli. Owned company ChemChina spend € 7.1 billion, or approximately US $ 7.7 billion for control of Firelli.

The transaction has been pocketed shareholder approval Pirelli, Sunday, March  22. Schemes like this transaction. Initially, the car tire business unit ChemChina namely China National Tire & Rubber buy 26.2% stake in Pirelli from the hands of the largest shareholder, Camfin.

Rothschild and ChemChina Finance is the advisor ChemChina. While Camfin appointed Lazard as advisors.

Furthermore, ChemChina will purchase the remaining shares through a new entity. The new company is owned by ChemChina, owner Pirelli, namely Marco Tronchetti Provera, the Italian bank UniCredit, Intesa Sanpaolo and Rosneft.

ChemChina buy Pirelli for € 15 per share. The purchase price does not include the debts of up to € 1 billion. Source Reuters whispered, ownership of shares owned Russian oil company, Rosneft, in Firelli will shrink.

"Sanctions related Ukraine require Rosneft to sell some shares to reduce the debt burden," the source said on Monday (23/3). Clearly, this transaction marks the transition of control of Pirelli into the hands of Chinese investors for the first time.

China expansion
For ChemChina, master Pirelli into the driveway to work on the car tire business premium which provide high margins. Instead, Firellibenefited from China's huge market potential in order to surpass the competition, Michelin and Continental.

Search Reuters, the acquisition of Pirelliis the fifth largest transaction ever undertaken Chinese state-owned enterprises. ChemChina action also marks the expansion of the Chinese state-owned enterprises after the eradication of massive corruption that reached the President of China, Xi Jinping.
Chinese SOEs make a breakthrough in the final last year. At that time, MMG Ltd. buy copper company in Peru, Las Bambas from Glencore hand. Acquisition Firellito be a marker of China's ambitions to master the automotive sector.

During this time, more Chinese companies in the telecommunications and internet play. Italy became the target of the acquisition of the Chinese company. Last year, about 10 Italian companies acquired by Chinese companies.