ChemChina in talks to buy 26% stake in Italian tyremaker Pirelli
21 Mar 2015
Italian investment company Camfin S.p.A. is in talks to sell its 26 per cent stake in Italian tyremaker Pirelli to China National Chemical Corporation (ChemChina) in a deal that may eventually see the Chinese state-controlled firm making a €7.1 billion ($7.6 billion) takeover bid for the world's fifth-largest tyremaker.
Camfin, which is 50 per cent owned by Russian oil and gas giant Rosneft, is keen on selling the stake in the wake of recent western sanctions against Russia over Ukraine.
Without disclosing the buyer's name, Camfin said it was in talks with an international industrial group to sell its entire stake in Pirelli at €15 per share, valuing the Milan-based company at €7.1 billion.
Camfin also added that post successful sale; the new buyers' newly-formed investment firm would then bid for the remaining shares.
Apart from Rosneft, Camfin's other main shareholders are Pirelli chairman and CEO Marco Tronchetti Provera, Italian banks Intesa Sanpaolo and UniCredit.
Italian newspaper Il Messaggero today reported that ChemChina is in talks to buy the stake.
Pirelli is the world's fifth-largest tyre manufacturer behind Bridgestone, Michelin, Continental, and Goodyear. It has 19 manufacturing sites worldwide and is present in over 160 countries.