Every single car enthusiast out there must have known that Pirelli is one of the world’s most potent tire makers. Its tires are often used on top notch luxury as well as sports cars. However, it seems that this Italy-based tire manufacturer can no longer survive on its own. Believe it or not, the company will very soon become the possession of the China National Chemical Corp., also known as the ChemChina. The Chinese company in question has signed an agreement with Pirelli which will see it handing over a total money amount of 7.1 billion Euros to the Italian tire manufacturer.
As it turns out, the ChemChina is owned by the Chinese government. Both Pirelli and the Chinese company agreed to sign the acquisition yesterday. The agreement enforces the ChemChina from China to hand over 15 Euros per share for the 26.2% share of the tire company. This 26.2% of the total share within the company belongs to the Cam Finanziaria. Yet, as for the remaining shares, they are up for grabs. It is said that a public tender offer is going to happen soon at the same price.
If reports are to be believed, the ChemChina has no interest in moving Pirelli’s headquarter from Milan, Italy, at all. However, the tire maker’s industrial as well as truck tire businesses will be merged into the AEOLUS. For your information, the AEOLUS is the largest tire makers across the whole land of China.
Ironically enough, last year, in the fiscal year 2014, Pirelli happened to receive increased earnings. It was reported that the company managed to secure a 6.8% earnings increase, leading to a total earning of 838 million Euros. However, that was before interest and taxes were included into the equation. As for the company’s revenue, it reportedly stood at the figure of 6 billion Euros.
