(Reuters) -Italian tyremaker Pirelli said on Wednesday that talks to try to mend relations with its largest shareholder, China’s Sinochem, had ended without a breakthrough.
Pirelli and its second largest shareholder, Italy’s Camfin, have said Sinochem’s shareholding was hindering the tyremaker’s ambitions to expand in the United States, where some lawmakers are opposed to approving projects backed by Chinese companies.
In April, Pirelli said that the Italian government’s move in 2023 to take “golden powers” at the company meant it was no longer controlled by Sinochem. However, the Chinese company rejected this assertion.
Pirelli said on Wednesday that, following negotiations, “the proposals extended by Pirelli to Sinochem have been in fact rejected”. It did not give details of the proposals.
Camfin backed the firm’s strategy in a statement on Wednesday, adding that “should the current situation with Sinochem not be settled quickly, Camfin would be forced to assess the effects of such behaviour on Pirelli and the shareholders’ agreement.”
Pirelli makes over 20% of its revenues in North America.
It posted a first-quarter adjusted earnings before interest and tax of 279.8 million euros ($313.4 million), up 6.5% year-on-year, topping analysts’ consensus forecast of 270 million euros, according to data provided by the company.
Pirelli, the sole supplier of tyres for Formula One cars, also confirmed its 2025 guidance, but said that if the current U.S. position on tariffs persisted, its adjusted EBIT was likely to come in at the lower end of guidance.
($1 = 0.8928 euros)
(Reporting by Romolo Tosiani in Gdansk. Editing by Mark Potter)
