By on March 24, 2015

Pirelli F1 Tire Range

Should things go as planned, China National Chemical Corp. — ChemChina — will buy into Pirelli in a €7.1 billion ($7.7 billion USD) deal.

Automotive News reports the deal could bring premium-tire technology to ChemChina, while giving Pirelli a huge jump in the Chinese domestic market. However, the chemical company’s bid of €15/share last weekend may be the beginning of a protracted takeover as it and Pirelli’s largest investor, Cam Finanziaria, attempt to secure 90 percent of the stock to take the tire company off of the trading floor; the share price climbed to €15.76 Monday.

The terms of the deal would give ChemChina 50.1 percent of the company, Finanziaria 49.9 percent, and would begin with the former paying €15/share for Finanziaria’s 26.2 percent of Pirelli, followed by a public tender for the rest of the company at the same price. Should that fail, however, ChemChina could merge its 66 percent with Finanziaria’s holdings to force a delisting. Pirelli chair and CEO Marco Tronchetti Provera would remain CEO under the deal, while ChemChina will seek a new chair.

The Sino-Italian buy-in is part of a number of takeovers of Italian companies by Chinese buyers, and would be the fifth-largest deal by a state-owned enterprise.

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25 Comments on “ChemChina, Finanzaria Buying Pirelli In €7.1B Takeover Deal...”


  • avatar
    PrincipalDan

    I’d make a snarky comment but so many of our tires are made by Chinese owned companies it isn’t even worth the speaking up.

    My Dad bought a set of no name Chinese tires for a vehicle 20 years ago and they were crap – but 20 years is a long time. As long as they can keep up Pirelli’s reputation they’ll do fine.

  • avatar
    Rod Panhard

    I swore off Pirelli tires many years ago. I tried them three times on a variety of cars, including cars they were recommended in the owner’s manuals. They were OEM on three cars my dad bought as well.

    They went out of round with lots of tread left, blisters popped out on the sidewalls.

    Pirelli, you’ve been dead to me for a long time, until I got a scooter that had them. Well, those replacement tires are literally on the way right now.

    Other than their calendar, I’m not sure why anyone gives a darn about their products.

    • 0 avatar
      John R

      Well the new Trofeo R tires are apparently teh new hotness.

      • 0 avatar
        Rod Panhard

        Unlike the Oldsmobile Trofeo, which was never a hotness or hot mess.

        • 0 avatar
          CoreyDL

          Those turned into a hot mess quickly unless great care was given. Hard to find today.

          • 0 avatar
            28-Cars-Later

            Ah ye of little faith my son, for the Trofeo was always powered by 3800.

            They are rare because of waning interest in PLCs and the SUV boom of the late 80s/early 90s.

          • 0 avatar
            CoreyDL

            Oh holy 3800 de santis!

            My thinking was actually more about the high level of dated tech, CRT, digital gauges, and very specific trim parts which were certainly unobtainable within a couple years. I bet they were in BHPH lots by 1996.

            Plus, you buy a 92 Trofeo, and by God it looked outdated when those Riviera’s came out soon after.

          • 0 avatar
            28-Cars-Later

            3800 cares not for those creature comfort doodads, it will run nonetheless which is what’s important (yes though the GM “Pac Man” dash liked to fail, my understanding was the CRT system was somewhat solid).

            The G-body Riv didn’t come out until nearly three years later for MY95, but point taken. I preferred the formal roofline and look of the E-body Toro over the “space age” Riv.

          • 0 avatar
            CoreyDL

            I agree, formal roof! I thought that final Riv was rather flimsy anyway.

            The Trofeo in this dark red is win.

            http://carphotos.cardomain.com/ride_images/3/2042/3261/30104130001_large.jpg

            Plus, rear light bar win, and flip-up lamps.

    • 0 avatar
      SoCalMikester

      Mine has OEM bridgestone battleaxes. theyre decent tires

  • avatar
    threeer

    Haven’t bought a Pirelli tire since I bought a retread back in the mid 80s. Now just one more reason to not consider them. And so it goes…

  • avatar
    CoreyDL

    Which tire company today produces -overall- the best tires for passenger automobile use? The highest number of good tire models.

    I’m guessing it’s Michelin or Continental.

    • 0 avatar
      segfault

      I would give the edge to Michelin, although Continental has a very good reputation, as well. My GLI came with Dunlop (owned by Goodyear) all-seasons which are awful in the snow but decent in the dry and wet. Will be getting snow tires if I still have the car next winter.

      I put a set of Pirelli P4 All Seasons on my old Altima, and they were very good tires.

    • 0 avatar
      CJinSD

      Michelin makes high quality tires. They make some tires that are poor value, and some performance tires that aren’t actually performance, but all of their tires are high quality. Continental makes some of the best tires and many indifferent ones. They’ll chase price points and work with car manufacturers at the cost of quality. Bridgestone is the same. Bridgestone’s best tires are often best in class, but they’ll build whatever a car manufacturer wants, right down to Ford quality.

      Pirelli is Euro-Goodyear. Kumho is probably better. Pirelli once made excellent calendars, but they got a little too National Geographic long ago.

      • 0 avatar
        tresmonos

        What do you think of Cooper Standard and Yokohama?

        I agree with your assessments thus far.

        If Goodyear makes tires that are equivalent in quality to their extruded hose, their tires are garbage.

        • 0 avatar
          benders

          I’d agree with that too. Yoko is good but I think they suffer a bit from always looking up at Bridgestone. Cooper lacks the capital to play with the big boys.

          Goodyear actually sold off their hose/conveyor belt division a while back. Continental just bought it early this year.

        • 0 avatar
          CJinSD

          Cooper Tire is sort of like GM. People think they’re an American company, but chances are you’re just getting 2nd and 3rd tier Asian stuff for your money. Cooper is very big in China. This article states that they can claim ‘Made in USA’ even on tires that aren’t:
          http://www.moderntiredealer.com/channel/retailing/article/story/2014/05/made-in-america.aspx
          I find that odd because the Cooper tires I’ve seen have Made in China stamped on them. I’ve driven a friend’s car on new high performance Coopers, but I didn’t drive it fast enough to gain much insight into their characteristics. The ride wasn’t awesome on our crummy roads.

          I’m not familiar with Standard tires at all and I had really bad experiences with Yokohama tires many, many years ago that inspired me to avoid them since. They may be just fine now, but I won’t know unless I find myself unable to get a decent deal on one of the three brands I know make great tires.

    • 0 avatar
      MBella

      Continental is probably the best all around. They really don’t have a bad tire, just different trade-offs between tires. If you research the attributes you want in a tire, Continental probably makes a tire you’ll be happy with. Michelin too me is like an over priced Pirelli. For both brands, they have some good tires, some OK tires, and some terrible tires. The Michelin Pilot Sport A/S Plus is probably the worst non Chinese tire produced in recent times, but its replacement the A/S 3 seems to be one of the best all season performance tires available. Some Pirellis are decent, especially for their price. I really like my set of Winter 210 Sottozero Series 2 that I used on my Subaru in the winter. I only bought them because they were the cheapest winter tire in my size at the time. They ended up wearing very evenly, they were decently quite, and still have over 50% of the tread remaining. Some of their tires have many issues with excessive road force. (Especially their Scorpion truck/SUV tires) When I buy tires, I don’t pay too much attention to the brand, and look at each tire individually. There are just too many variables in tires to search by brand only.

      • 0 avatar
        CoreyDL

        I think based upon what everybody says here, and other things I’ve collected in my brain from reading here – that Continentals will replace my Goodyear AS- whatever they are.

        • 0 avatar
          CJinSD

          I have the Continental ExtremeContact DWS tires on one of my cars. I have about 18,000 miles on them. So far, so good.

          • 0 avatar
            CoreyDL

            I couldn’t think of the model, but that’s the ones people are always talking about around here.

          • 0 avatar
            Noble713

            Used to have the same tires (Conti ExtremeContact DWS) on my Evo X.

            Loved ’em.

          • 0 avatar
            MBella

            Just be aware that the ExtremeContacts, both DW (Dry/Wet summer tires) and DWS (Dry/Wet/Snow all season) are on the louder end of the spectrum. It’s a trade-off that results in really good performance in the wet. SportContacts are quieter, but no all season are available. If you want more of touring tire, the ProContacts are very good. It is probably the most middle of the road tire. It’s got decent ride, decent performance, decent noise, decent all season capability. This is why they are popular with German manufacturers.

  • avatar
    IHateCars

    Pirelli still makes great motorcycle tires…their Diablo line (Super Corsa, Rosso, etc) is a great track/street tire.

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