Pirelli Split Widens With China Plan to Ringfence US Refused (1)

The split between Pirelli & C. SpA’s two biggest investors widened when a proposal by China’s Sinochem Group aimed at addressing the tiremaker’s US regulatory risks was rejected by its top Italian owner.

The plan proposed late Monday by Sinochem, which owns about 34% of Pirelli, would center on a possible ringfencing of the Italian company’s US activities, according to people familiar with the proposal.

This would separate operations and governance tied to sensitive technology such as Pirelli’s Cyber Tyre sensors, limiting Sinochem’s voting rights and board representation to address regulatory concerns and issues raised by the US, the ...