ChemChina to take the M&A road to success

Pirelli acquisition likely to bring about 'revolutionary' change to group's tire business, reports Li Xiang.

Being a long-term industrial investor rather than simply a financial investor is what Ren Jianxin, the 57-year-old chairman of China National Chemical Corp, has in mind when he does a deal overseas.

A case in point is ChemChina's bid to acquire Milan-based Pirelli &C. SpA, the world's fifth-largest tire producer. If the deal valued at 7.4 billion euros ($8.1 billion) goes ahead in its entirety, it will make the State-owned chemical giant a controlling shareholder, with a 65 percent stake in one of the oldest Italian industrial brands.