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Italy will decide on Pirelli's Chinese Investor by September

Italy will decide on Pirelli's Chinese Investor by September

Italian officials will decide in September whether or not to sanction Sinochem, the Chinese shareholder of Pirelli, for violating Rome's rules to curb Beijing influence over the tyremaker.

The investigation by the government could exacerbate a dispute between Sinochem and its largest Italian shareholder, Camfin, as the two first parties claim that China's large holding is a threat to the group's plans to expand in the United States.

Sinochem has declined to comment, while Pirelli is not available for comment.

Sources who asked not to be identified said that the government of Prime Minister Giorgia Melons was supposed to make a decision by July 31, but it has extended its deadline for completing its investigation by 60 days, until the end of September.

In November of last year, the government launched an investigation to determine whether its executives' presence on the board of the tyremaker was in violation of these restrictions.

Sinochem, a vehicle owned by veteran Italian businessman Marco Tronchetti Provera (who holds 27.4%), is Pirelli’s largest shareholder with 37%.

Tronchetti provera, Pirelli's boss of more than 30 years, has lobbied the government for further actions to limit Chinese influence on the company. This was reported in June. (Reporting and editing by Gavin Jones, Giulio Pieovaccari added reporting, Giuseppe Fonte).

(source: Reuters)