Photo: Pirelli
Founded in 1872 by Giovanni Battista Pirelli, the Milan-based tire manufacturer is one of the most highly-acclaimed companies in the world. According to a recent report courtesy of AutomotiveNews Europe, the outfit will be bought for €7.1 billion, translating to $7.7 billion according to current rates.
Before all else, we deem necessary to point out Pirelli’s 2014 financial results. With total revenue amounting to €6,018 million ($6,505 million at current exchange rates) and organic growth up 5.9 percent over the same period of 2013, Pirelli was on a roll in 2014.
In the premium segment alone, sales volumes hiked a whopping 17.8 percent and amounted to 55 percent of the total revenue for 2014. Yup, it was a fine year.
Despite all these financial details, the fifth-largest tire maker in the world is slated to be bought for the previously amount of money by ChemChina. Formally known as the China National Chemical Corporation, the state-owned enterprise’s main man is President Ren Jianxin.
ChemChina agreed to pay approximately €15 ($16.21 at current rates) per share for the 26.2 percent of Pirelli which is currently owned by investment and asset management company Cam Finanziaria. Thankfully, Pirelli will retain its headquarters in Italy and it may be re-listed in about four years’ time.
In the premium segment alone, sales volumes hiked a whopping 17.8 percent and amounted to 55 percent of the total revenue for 2014. Yup, it was a fine year.
Despite all these financial details, the fifth-largest tire maker in the world is slated to be bought for the previously amount of money by ChemChina. Formally known as the China National Chemical Corporation, the state-owned enterprise’s main man is President Ren Jianxin.
ChemChina wants to buy Pirell in order to gain premium tire manufacturing know-how
The transaction is expected to be carried out by ChemChina’s subsidiary China National Tire & Rubber Co., with the deal slated to close in the summer of 2015. "The partnership with a global player like ChemChina, through its affiliates, represents a great opportunity for Pirelli," said Pirelli Chairman Marco Tronchetti Provera.ChemChina agreed to pay approximately €15 ($16.21 at current rates) per share for the 26.2 percent of Pirelli which is currently owned by investment and asset management company Cam Finanziaria. Thankfully, Pirelli will retain its headquarters in Italy and it may be re-listed in about four years’ time.
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