Italy Probes Sinochem Over Pirelli Governance

Italy has initiated an administrative procedure against China’s Sinochem, the largest shareholder of Italian tiremaker Pirelli, for a potential breach of governance rules designed to protect the company's autonomy. The government invoked its 'golden power' provisions, which restrict Sinochem's influence and require a qualified majority for strategic decisions. The investigation, which Pirelli announced on November 6, will assess compliance with measures that prevent organizational links between Pirelli and Sinochem. Sinochem, which holds a 37% stake in Pirelli, has denied any violations and expressed confidence in its adherence to the regulations. The procedure has a 120-day timeframe for conclusion, as mandated by the Italian government. Pirelli's second-largest investor is Camfin, controlled by Marco Tronchetti Provera, who owns a 25.7% stake in the company.