Pirelli moves board meeting amid Italy golden power review

Pirelli has announced adjustments to its corporate governance timeline amid an impending review under Italy’s "golden power" legislation, as tensions between its major shareholders, Camfin and Sinochem, escalate. The existing shareholder agreement between the Italian and Chinese entities, which expires on May 17, 2026, is set to lapse without renewal, triggering a government intervention to redefine Pirelli's governance framework. This development follows prolonged disputes over strategic decision-making, with Camfin and Pirelli citing challenges posed by Sinochem's influence, particularly amid U.S. regulatory scrutiny of Chinese technology in the automotive sector.

Sinochem, holding a 34.1% stake as Pirelli's largest shareholder, and Camfin, with 25.3% (planning to increase to 29.9%), have reportedly agreed not to extend their pact. The Italian government, which previously imposed golden power restrictions in 2023 to limit Sinochem's operational role, is now evaluating options to further curtail its influence, including converting the Chinese firm into a passive investor or facilitating a stake sale. Sinochem has engaged BNP Paribas to explore potential transactions, with sources indicating openness to offers carrying a premium.

The review aims to address governance uncertainties ahead of Pirelli's upcoming board elections, ensuring alignment with national strategic interests while supporting the company's global ambitions. While the government has considered measures such as freezing Sinochem's voting rights, efforts remain focused on negotiating a mutually acceptable resolution to stabilize the firm's leadership structure. The outcome will likely shape Pirelli's ability to navigate geopolitical and market dynamics in critical regions like North America.