ChemChina to buy stake in Pirelli
March 30, 2015 Category Mergers & Acquisitions, Weekly
China National Chemical Corp (ChemChina) plans to buy a stake in Pirelli, the world’s fifth-largest tire maker, in a €7.1 billion deal. ChemChina also envisages taking Pirelli private. If successful the deal will give state-owned ChemChina access to technology to make premium tires, which can be sold at higher margins, and give the Italian firm a boost in the huge Chinese market. It would be China’s fifth-biggest outbound deal by a state-owned firm, according to Thomson Reuters data, and the first major acquisition since China’s MMG led a consortium last year to buy the huge Las Bambas copper mine in Peru from Glencore. Under the proposed deal ChemChina’s tire making unit, China National Tire & Rubber, will enter into a joint venture which will first buy the 26.2% stake that Italian holding firm Camfin owns in Pirelli. The venture will then launch a mandatory take-over bid for the rest of Pirelli. Pirelli, the sole tire supplier to Formula One motor racing, has an annual global sales revenue of more than €6 billion. Chinese outbound acquisitions in Europe have been rising in the past four years, with total deal value growing steadily from €39.3 billion in 2011 to €53.2 billion last year, according to data provider Dealogic. About €15.9 billion worth of deals have been recorded so far this year, including the one with Pirelli.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world