MILAN—China National Chemical Corp., Camfin S.p.A. and Camfin's shareholders have received approval from the relevant antitrust and other authorities to finalize ChemChina's acquisition of Camfin's Pirelli & C. S.p.A. shares.
Camfin said in an Aug. 4 news release that the deal to sell its 26.2 percent stake in Pirelli for 15 Euros per share—which at the time translated to $16.25 per share and valued the Italian tire maker at $7.7 billion—will close on Aug. 11. At that time, Camfin's shares will transfer to Marco Polo Industrial Holding S.p.A. (Bidco), a newly incorporated Italian company, and Camfin will reinvest in Marco Polo International Italy S.p.A. (Newco), a company that controls Bidco.
Following the completion of the purchase, Bidco will launch the mandatory tender offer on the remaining ordinary share capital of Pirelli at the price of $16.25 per share. If successful, ChemChina potentially would take Pirelli private.
Pirelli would be integrated into ChemChina's China National Tire & Rubber Co. subsidiary.
In April, ChemChina reached an agreement to acquire Edizione s.r.l.'s stake in Pirelli for the same price of $16.25 per share, which would give the Chinese tire maker a share of more than 30 percent in Pirelli if approved.
In an earlier release, ChemChina said the transfer of Edizione's Pirelli shares to Bidco comes with the condition that Camfin has sold its shares to Bidco. Edizione also may decide to postpone the transfer of its direct Pirelli stake to Bidco by way of acceptance of the mandatory tender offer.
CNRC said Edizione has the right to terminate the share purchase agreement in the event of the launch of one or more competitive tender offers by third parties in respect of the Pirelli ordinary shares, unless Bidco announces an increase of the price of its offer to at least the same price as the last competitive offer.
ChemChina reported sales of $39.4 billion in 2013 and is considered China's largest chemical company. According to its website, it operates in six sectors: new chemical materials, basic chemical materials, oil processing, agrochemicals, rubber products and chemical equipment.
CNRC says it's China's largest producer of off-the-road tires with Aeolus Tyre Co., ChemChina Guilin Tire Co. Ltd., Double Happiness Tire Industrial Co. Ltd. and Qingdao Yellowsea Rubber Co. Ltd. among its holdings.
Pirelli is the fifth largest tire maker in the world, according to Rubber & Plastics News' 2014 Global Tire Report, and it reported 2014 sales of $7.98 billion.