It seems like the Chinese companies are on a buying spree and their favorite shopping destination is Italy. A few year’s ago, a Chinese firm named Qianjiang Group took over one of the oldest motorcycle companies, Benelli Motorcycles.
Now, another Chinese firm called China National Chemical Corp (ChemChina) will soon strike a 7.1 billion euro deal to buy world’s fifth largest tire manufacturer, Pirelli. The deal has been agreed with Pirelli’s top shareholders on Sunday. A weak euro is said to be the reason for such takeovers. Post the takeover, ChemChina will gain access to technology to make premium tires.
“The sale of a prized piece of our industrial system like Pirelli to foreign buyers would not be a drama in itself if Italian capitalism were able to face up to international competition and the government had an industrial policy,” the head of Italy’s biggest union, Susanna Camusso said.
What do you think of this deal? Will being associated with a Chinese firm affect Pirelli’s goodwill in the global market? Do let us know your thoughts and opinions through the comments section below.
Source: Reuters