Milan: Italian tyre maker Pirelli is facing a risky situation after its leading Chinese shareholder, Sinochem, rejected a proposal aimed at resolving governance issues that could impede its expansion efforts in the United States. This development was revealed by Pirelli's CEO in an interview with Corriere della Sera.
According to Radio Television Brunei, the governance issues have been a point of contention between Pirelli and its second-largest shareholder, Italy's Camfin. Both parties have expressed concerns that Sinochem's significant shareholding poses risks to Pirelli's plans to grow its presence in the U.S. market. The apprehension arises from the resistance of some U.S. lawmakers to endorse projects backed by Chinese firms.
Pirelli had put forward a proposal to address these governance challenges, although the specifics of the proposal were not disclosed. Earlier this month, Sinochem rejected the proposal, leaving Pirelli in a precarious position as it seeks to navigate the complexities of international expansion amid geopolitical sensitivities.