Arab Today, arab today chinese takeover of pirelli met with resignation in italy
Last Updated : GMT 04:13:33
Arab Today, arab today
Arab Today, arab today

Chinese takeover of Pirelli met with resignation in Italy

Arab Today, arab today

Arab Today, arab today Chinese takeover of Pirelli met with resignation in Italy

Tyre maker Pirelli
Milan - AFP

The takeover of tyre maker Pirelli by a Chinese firm sparked feelings of bitterness and resignation in Italy on Monday, as the cash-strapped country prepared to relinquish an iconic part of its industrial heritage.
Pirelli's largest shareholder Camfin said Sunday that it had signed a deal with ChemChina under which the state-owned chemical giant will buy into the world's fifth-biggest tyre manufacturer in a 7.4 billion-euro ($8.07 billion) deal.
It calls for ChemChina to eventually hold a controlling stake of at least 50.1 percent of the company renowned for its Formula One equipment and racy calendars.
Under the proposed terms, the company's headquarters and research centre would remain in Italy with current CEO Marco Tronchetti still in charge. Pirelli would eventually be split into two companies, one dedicated to high-end tyres, the other to industrial ones.
Tronchetti told employees in an internal note on Monday that the takeover was "a growth process which will take time, but in which I strongly believe and will engage in as both manager and shareholder."
ChemChina's bid "will allow us to take our growth strategy further with greater vigour," he said.
His optimism failed to rub off on Italy's main business leaders, most of whom appeared to accept that the eurozone's third largest economy, gasping for investment after the economic crisis, had little choice but to put up and shut up.
"Yesterday, one of the rare big Italian businesses changed owner," former centre-left premier Romani Prodi said.
 "Today, industrial policy is made in Beijing.... (but) we're happy because before this even the Chinese didn't come to invest in the country," he said, calling on Italy to snap out of it and recover its own "strategic industrial policy."
The bitter pill for Italy, which has struggled to kick-start growth, comes just weeks after the announcement that Qatar's sovereign fund is to become sole owner of a prime area of real estate in the northern city of Milan.
- 'Not ideal' -
Pirelli is a flagship company for the Italian economic capital, where it began business in 1872 by making bicycle wheels before moving into the nascent car industry.
Now a mainstay of the Formula One racing circuit, the company is equally well known for its calendars that have featured stars from Sophia Loren and Brigitte Bardot to Penelope Cruz.
While Prime Minister Matteo Renzi did not comment on the ChemChina deal, Labor Minister Giuliano Poletti applauded Pirelli for being open to change and drawing in much-needed foreign funds.
"If there are Italian investors, great... (but) if there aren't, rather than businesses which slowly, for lack of investment, end up ageing and closing up shop, we need to retain vitality and do so by having an idea," he said.
"It seems Pirelli has done so, keeping its head in this country with a strong national presence. Our country needs international investments," he added.
But Gian Maria Gros Pietro, chairman of the management board of Intesa Sanpaolo bank -- an indirect shareholder in Pirelli -- was less impressed, saying the deal was "not ideal, but where in Italy will we find someone to challenge this takeover?"
La Repubblica daily also wondered if things "could have been done differently?"
The deal is "the result of globalisation and the impossibility for a family to retain control over a group worth over 7.0 billion euros, in spite of the support of the country's main banks," it said.
Cesare Romiti, former executive of companies including Fiat and Alitalia, said he was "sure there will be benefits" but spoke of "great bitterness" at the takeover, warning that "taking entire industries away is dangerous for Italy."
"Italy is losing another company due to a lack of government policy which must aim to keep businesses here," he said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese takeover of pirelli met with resignation in italy Arab Today, arab today chinese takeover of pirelli met with resignation in italy

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday