ChemChina Confirms Bid for Pirelli

China National Chemical Corp. (ChemChina) confirms its plan to acquire tiremaker Pirelli & Co. SpA for at least €7 billion.

The Chinese chemical giant's China National Tire & Rubber Co. subsidiary will begin by spending €1.8 billion to buy a 26% stake in Pirelli from the Italian company's largest shareholder, Camfin SpA. Camfin is a holding company indirectly controlled by Pirelli Chairman/CEO Marco Tronchetti Provera.

State-owned ChemChina will then offer to buy remaining shares in Pirelli, also at €15. Shares in Pirelli closed at €15.23 on Friday.

Comfit says the merger would bolster Pirelli's presence in China, improve ChemChina's technological expertise and expand the Chinese company's access to markets in Europe and North America.