Pirelli, the Italian tire manufacturer best known as the tire supplier to Formula 1, has entered into an agreement with state-owned ChemChina that will allow the Chinese company to buy the 26.2% of the shares of Pirelli owned by Italian holding firm Camfin at €15/share, then will propose a mandatory takeover bid for the remainder of the shares at the same price through an investment vehicle that is composed of Chem China, Camfin investors, two Italian banks (UniCredit and Intesa Sanpaolo) and a Russian oil company. ChemChina’s goal is to fold in Pirelli’s truck and industrial tire sector into AEOLUS, China’s biggest tire manufacturer, and to give the Pirelli name a bigger platform in Asia, allowing the company to deal with competition from Michelin and Continental easier.
That being said, however, minority investors in Pirelli might turn the deal into a drawn-out affair. If Pirelli cannot secure 90% of the company stock, the deal cannot move forward as planned. If that doesn’t happen, the takeover could drag out for months while deals are worked and settled. Unless another tire manufacturer steps in (such as Michelin, Continental or BF Goodrich), the chances of the deal eventually going through are still high.
(Sources: Reuters, WorldCarFans)
The Pirelli tires aren’t any better than the Chinese junk tires as it is. Only seems fitting that the Chinese should buy them.
Not to be rude or blunt or anything . But that .. has to reign supreme as the most uninformed … ignorant .. unintelligent and ludicrous comment of the entire year 2015 to date here !
Making things worse … its blatantly obvious by the level of ignorance displayed in your comment that you never in your entire life have ever even driven on a set of Pirellis … never mind owned a set !
Heres a clue wingnut . Pirelli Scorpions on the Benz all around . Watch them in winter outperform studded Snow Only tires in the ice and snow …. and then run circles around Summer Only Tires in the warm with absolute ease .
Bryan . There is no deal at present . As of this moment heres the facts ;
ChemChina has made public an offer to purchase Pirelli for the said $8 billion despite Pirelli not placing the company up for sale
Currently … the two are discussing the possibility of moving forward on the deal … but as stated .. at present there is no deal ! Just a verbal offer
Also as you somewhat inferred … the complexities of such a deal are so deep and twisted … the chance of this ever happening are slim to none at best .. then again … when it comes to business in the 21st century especially as it applies to Pirelli [ of whom the Italian government are part owners … and part of the complexity ] and dealing with the Chinese …. who knows what will happen ?
Gee, maybe you should write for BS, I am sure you can do a far better job. I liked life better before the internet…when long winded blowhards would open their cockholsters we could just turn the channel now we are forced to listen to knowitall cumgobblers run their mouths from their home sopabox on every form of media know to man…it is almost unescapable…
Hear hear bravo.