MILAN, Italy—The China National Tire & Rubber Co., a subsidiary of the China National Chemical Corp.(ChemChina), has been granted approval by European Union antitrust bodies to proceed with its bid for Italian tire maker Pirelli & C. S.p.A.
A filing on the website of the European Commission on July 1 stated that the transaction concerned the proposed acquisition of sole control of Pirelli by CNRC.
“The acquisition will be effected through a number of steps, including an initial acquisition by CNRC of Camfin S.p.A.'s non-controlling 26.2 percent stake in Pirelli, immediately following which CNRC will launch a mandatory tender offer for the remaining shares of Pirelli,” the European Commission's filing said.
After the successful completion of the tender offer, the filing added, CNRC will exercise sole control over Pirelli.
Pirelli ranks fifth on RPN's list of global tire manufacturers.
The plan to purchase Pirelli was first announced in March and at 15 Euros per share, which at the time translated to about $16.25 per share and valuing Pirelli at about $7.7 billion.