Manager with dual role: in Cnrc and in Pirelli. And so the Italian government initiated administrative proceedings for the possible violation of the Golden Power. In fact, the absence of organizational-functional connections between the Bicocca group and the Chinese one would not be guaranteed.
With Golden Power reference is made to a regulatory instrument introduced in Italy in 2012, which allows the government to intervene to protect national strategic sectors, in areas such as defence, telecommunications, energy, infrastructure and cyber security. This special power grants the executive the power to block, limit or subordinate mergers and acquisitions of Italian companies operating in sectors crucial to safety and the public interest, as in the case of Pirelli, a leading company in the tire sector.
The Chinese entered Pirelli in 2015when Cnrc entered the Milanese company, provoking both expectations for the strengthening of Pirelli on international markets and concerns about Beijing’s growing influence in key sectors of the Italian economy. On October 31, a week ago, Marco Polo International Italy (MPI), on behalf of Cnrc (part of the state giant ChemChina), notified Pirelli of the start of the procedure, as requested by the Presidency of the Council. At the center of the proceeding is the desire to ensure compliance with the requirements imposed by the June 2023 decree, which required the absence of functional and organizational connections between Pirelli and Cnrc.
The Italian government wants to guarantee that Pirelli’s strategic operations and decisions remain autonomous, preventing the historic company from being influenced directly or indirectly by the Chinese group. The executive’s attention is focused on the role of some directors who also hold managerial roles in companies controlled by Cnrc. This dual role could compromise Pirelli’s decision-making independence, which is why the government has launched an investigation. If the violation is confirmed, the executive could impose restrictive conditions or require changes to the corporate structure. Cnrc responded by declaring that it believes it has always respected the rules established by the Golden Power decree.
The outcome of the proceedings (120 days available) will be crucial not only for Pirelli, but for defining the future of foreign investments in strategic Italian sectors. The objective is a result that manages to reconcile national security and global competitiveness.
