ChemChina, Finanzaria Buying Pirelli In €7.1B Takeover Deal
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.
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.
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...
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.
Pirelli still makes great motorcycle tires...their Diablo line (Super Corsa, Rosso, etc) is a great track/street tire.