EU and US could reach trade deal this weekend - Reuters
Investing.com -- The board of Pirelli, the renowned Italian tire manufacturer, is reportedly close to finalizing an agreement to end Sinochem’s control over the company, according to Bloomberg News.
This move comes in response to a request from Italian regulators, according to a report from local Italian newspaper Il Messaggero today. Sinochem, a Chinese chemical company, currently holds a 37% stake in Pirelli.
The board of Pirelli is meeting today to discuss the potential termination of Sinochem’s control and to approve the company’s annual results for Fiscal Year 2024.
The details of how Sinochem’s 37% stake or control would be reduced were not specified in the report. Neither Pirelli nor Sinochem have released any comments regarding these reports.
"We expect media headlines to remain intense this week as we await a company update following the board meeting. We see the potential for the Sinochem stake/control to be reduced as a positive for the shares, given this may allow Pirelli to undertake further US capacity additions to localize US tire-manufacturing to reduce tariff exposure," Citi analysts commented.
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