Czech billionaire Michal Strnad, who controls the defense and industrial conglomerate Czechoslovak Group (CSG), has purchased a 14% stake in Italian tire maker Pirelli from Chinese state-owned Sinochem. The deal, valued at approximately €987 million ($1.14 billion), involved the acquisition of nearly 152 million Pirelli shares at €6.50 each through Strnad's investment company, Lumina Crown. This transaction makes Strnad Pirelli's third-largest shareholder and aligns with his strategy to diversify investments into market-leading global brands with strong growth prospects.
Following the sale, Sinochem's stake in Pirelli has decreased from 34.1% to 20.1%, making it the second-largest investor. The largest shareholder is now Camfin, controlled by Pirelli's Executive Chairman Marco Tronchetti Provera, whose stake returned to 26.5% (or 26% according to another source). This move significantly reduces China's influence over the Italian tire manufacturer, following interventions by the Italian government using its "golden power" rules to protect strategic assets. These restrictions had previously limited Sinochem's board representation and governance rights and barred its appointees from key executive positions.
The discussions for this acquisition were first reported earlier in July, with Bloomberg indicating that the deal could help ease pressure over China's role at Pirelli, especially concerning national security and data sharing given Pirelli's sensor-equipped Cyber Tyre products. The transaction was facilitated by Jefferies advising Lumina Crown and BNP Paribas advising Sinochem. Strnad's Czechoslovak Group, which went public in Amsterdam in January, already includes Italian brands like Fiocchi Munizioni and Armi Perazzi. This investment marks a long-term commitment for Strnad, aiming to expand beyond the defense sector into other leading industries.
