China will give up control of Pirelli, new agreement reached between Italy and China

World World: An important agreement is going to be reached between the shareholders of Italian tire manufacturer Pirelli, in which China’s state-owned company Sinochem will no longer be considered the controller in the company’s operations. Sinochem will continue to have a 37% stake in the company, but will no longer play an effective role in the company’s management.

There was a long-standing tension between Pirelli and Sinochem over the governance of the company, especially over expansion plans in the US. Due to this tension, the company had stopped investing in the US. Pirelli’s board will approve the 2024 financial report along with this agreement on Monday. The meeting was earlier scheduled to be held at the end of March, but it was postponed for a month due to tension among investors.