The government of Italy has imposed several measures to prevent Pirelli’s biggest shareholder, Sinochem, from extending its control over the tire maker, a move that will reportedly stop the Chinese government from gaining access to valuable information and sensitive chip technologies, according to Euronews. Sinochem, an organization owned by the Chinese government, holds a 37% stake in Pirelli as well as 60% of the seats on the company’s board.
In a June 16 statement, the Italian government said that Pirelli’s Cyber Tyre system, which utilizes chip technologies to collect vehicle data, is “configured as a critical technology of national strategic importance.” Furthermore, the government said that improper use of that equipment “can pose significant risks not only to the confidentiality of user data but also to the possible transfer of information relevant to security,”
During the week of June 16, new restrictions were imposed by the Italian government, limiting Sinochem’s influence over Pirelli’s business. The measures reportedly included barring Sinochem from creating strategic/financial plans for the company or appointing a new CEO for the Italian tire maker. The government believes the orders will protect the “autonomy” of Pirelli and its management team, according to CNN.
Just days after the Italian government enacted the new measures limiting Sinochem’s power, Pirelli investor Camfin, which holds a 14.1% stake in the company, proposed the GM of Operations, Andrea Casaluci, become the company’s new CEO on June 20. The nomination comes after Pirelli’s deputy CEO, Giorgio Bruno, who had been lined up for the top position in the organization, decided to leave the business to pursue other enterprises, Camfin said in a statement.
