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.
The post ChemChina, Finanzaria Buying Pirelli In €7.1B Takeover Deal appeared first on The Truth About Cars.
Best Deals today in www.freepromotoday.com
