ChemChina acquires Pirelli

ChemChina acquires Pirelli

ChemChina acquires Pirelli

China National Chemical Corporation (commonly called ChemChina) agreed on Sunday to buy Pirelli, Italian tire maker, in € 7.1 Billion ($ 7.7 Billion ) deal. The deal is the latest acquisition by Chinese goverment.

 Italy is for China the second-biggest market in Europe and fifth-largest  worldwide with completed ten deals in 2014.

 At first China National Tire & Rubber, ChemChina’s tire making unit, will buy 26.2 percent of Pirelli from Camfin and after that avails mandatory takeover for the rest.

 The offer is valued at 15 euros per share, it’s valued group at € 7.1 Billion ($ 7.7 Billion), not counting debt about € 1 Billion by the end of  2014.

 Marco Troncheti Provera will remain CEO of Pirelli, but new owners will pick a new chairman.

 This deal is unlucky for Rosneft, russian state owned oil and gas corporation, which because of Ukraine crisis through international sanctions needs to cut debt and will have reduce its stake in Pirelli.

 For Pirelli, which supplies Formula One equipment increase its range to compete against larger rivals as Continental and Michelin which are looking for growth in Asian market.

 Among others Italian acquisitons by Chinese Goverment are stakes in power grid companies Snam and Terna, turbine maker Ansaldo and luxury yacht maker Ferretti.

 Mr. Stakebay says :

 This deal helps China to purchase technology to make premium tires with higher margins and better and larger access to Chinese market and diversify another sectors like telecommunications and internet.

Chairman, President and CEO of ChemChina…………………..REN JIANXIN………………………xxxxxxxxx(2013)

 CEO of Pirelli ……………… MARCO TRONCHETI PROVERA………….2003-present………….. € 956 201 (2013)

CHEMCHINA

PIRELLI

Revenue

-

€ 6.061 Billion (2013)

Operating income

-

€ 785 Million (2013)

Profit

-

€ 306 Millon (2013)

Total assets

-

€ 7.360 Billion (2013)

Total Equity

-

€ 2.437 Billion (2013)

Employees

-

37 979 (2013)

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