World News | Italy Opens Procedure Against China's Sinochem for Possible Breach of Pirelli Governance

Milan, Nov 7 (AP) Italy has opened an administrative procedure against China's Sinochem, the largest shareholder in Italian tiremaker Pirelli, for a possible breach of restrictions designed to protect national strategic assets.

Pirelli announced Wednesday that the procedure was launched under the so-called “golden power” provisions, which include restrictions to the access of some information and higher vote thresholds for strategic decisions, invoked by the Rome government in mid-2023.

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Pirelli said Sinochem, which controls a 37 per cent stake in the company, has denied any violations of the restrictions, adding the Italian government had 120 days to issue a finding.

In announcing the golden power provision, the government cited the sensitivity of sensors implanted in tires that can collect data such as road layouts, geo-location and the state of infrastructure, making it of a "critical technology of national strategic importance.”

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The tiremaker's second-largest investor is Camfin, the investment vehicle of Pirelli's former CEO and current executive vice-chairman Marco Tronchetti Provera, which holds a 32.4 per cent stake. (AP)

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