(July 3): Czech billionaire Michal Strnad is in talks to buy a minority stake in Pirelli & C SpA from its largest shareholder, according to people familiar with the matter, in a deal that could help ease pressure over China’s role at the Italian tyremaker.
Strnad is negotiating with state-backed Sinochem Holdings Corp to purchase a 14% stake in Pirelli, one of the people said, asking not to be named discussing private information. The talks are ongoing and a deal isn’t certain, the people said, with potential hurdles including authorisation from Beijing.
A transaction of that size — just over €1 billion at current market values — would leave the Chinese group with roughly 20% of Pirelli. That would mark further progress in a diplomatically sensitive effort to limit Sinochem’s influence at the tyremaker, an issue that’s become increasingly important as Pirelli expands its connected-tyre technology.
Pirelli shares rose as much as 4.1% in Milan following Bloomberg’s report. Before Friday, the stock had risen 17% in 2026.
Representatives for Strnad, Sinochem and Pirelli declined to comment.
Pirelli’s Chinese ownership has drawn scrutiny over national security and data sharing in the US, one of its biggest markets, as the company rolls out its sensor-equipped Cyber Tyre products.
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Pirelli’s Chinese ownership has drawn scrutiny over national security and data sharing in the US, one of its biggest markets, as the company rolls out its sensor-equipped Cyber Tyre products. (Photo by Bloomberg)
Italy’s government has used its golden-power authority to limit Sinochem’s involvement in Pirelli, including restrictions on board representation and governance rights while the Chinese investor remains above 9.99%.
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In recent weeks, Pirelli has reshaped its board and executive leadership, naming former chief executive officer and major shareholder Marco Tronchetti Provera as executive chairman over objections from the Chinese side. Bringing on Strnad, who controls Czech defence group CSG NV, would further strengthen Pirelli’s European ownership.
The main hurdle to a final deal is regulatory approval from China’s State-Owned Assets Supervision and Administration Commission, the government body that oversees state-owned companies, one of the people said. A basic share-price framework including a premium has been discussed, with the earliest possible timing in late July, the person said.
Corriere della Sera earlier reported that Strnad and Czech billionaire Pavel Tykac were interested in buying a combined 10% to 20% Pirelli stake from Sinochem.
Tykac is no longer involved, the people told Bloomberg News. A spokesperson for his Sev.en Global Investments declined to comment.
Prague-based CSG listed in Amsterdam earlier this year, in the largest initial public offering for a pure defence firm. It acquired a 70% stake in Italy’s Fiocchi Munizioni in 2022 and bought the rest of the ammunition maker last year.
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