Italian government clears Chinese shareholder over Pirelli governance probe

Milan, Italy – The Italian government has closed an investigation into China National Tire and Rubber Corp. (CNRC) over its role at Pirelli, finding no evidence of a breach of restrictions imposed under ‘golden power’ rules.

In a 29 Sept statement, Pirelli said Marco Polo International Italy (MPI), acting on behalf of CNRC, had been notified by the prime minister’s office about the ruling.

The 26 Sept decree concluded with “the dismissal of the administrative proceedings” that had been launched on 31 Oct 2024.

According to Pirelli, the government found that “the alleged breach by CNRC regarding the measure to ensure the absence of organisational-functional links between Pirelli on the one hand and CNRC on the other, has not been confirmed by the evidence gathered.”

It also determined that “the conduct of the non-independent directors appointed by CNRC did not result in acts/decisions capable of undermining Pirelli’s managerial autonomy.”

The proceedings covered the period between 16 June 2023 – when Italy issued a decree imposing special powers over Pirelli’s governance – and 31 Oct 2024, when the sanctioning process began.

The 2023 decree required CNRC, part of the Chinese state-owned Sinochem, to respect limits designed to safeguard Pirelli’s independence.

Italy invoked its 'golden power' law for Pirelli in 2023 amid concern over CNRC’s influence.

As part of the move, key decisions such as appointments of Pirelli’s chief executive must be kept free of shareholder interference.