Pirelli's biggest shareholder to sell its stake to ChemChina

Milan

PIRELLI & C SpA's biggest shareholder has agreed to sell its stake to ChemChina in a deal that will lead to a takeover bid valuing the Italian tyremaker at about 7.1 billion euros (S$10.56 billion).

State-owned ChemChina agreed to pay 15 euros a share for the 26.2 per cent of Pirelli owned by Cam Finanziaria SpA, or Camfin, the companies said in a statement. ChemChina will then make a public tender offer for the rest of the tyremaker at the same price.