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‘Golden power’ for Pirelli: green light from the Government with provisions to protect strategic asset

16 June 2023

During the Council of Ministers meeting on 15 June 2023, as per the proposal by the Ministry of Enterprises and Made in Italy, the Government ordered for the special ‘golden power’ to be exercised for the transaction subject to notification by China National Tire and Rubber Corporation, Ltd., regarding the shareholders’ agreement on the governance of the company Pirelli & C. S.p.A.
The Government’s decision, respecting the principle of proportionality, involves specific provisions for the protection of the strategic asset consisting of CYBER sensors that can be implanted in tyres.
Said sensors are able to collect vehicle data regarding, among other things, road layouts, geolocation and the state of infrastructure.
Information gathered in this way can be transmitted to cloud computing systems and super computers for the creation of complex digital models using artificial intelligence. These models can then be used in cutting-edge systems such as smart cities and digital twins.
This CYBER technology is important for a variety of sectors: industrial automation; machine to machine communication; machine learning; advanced manufacturing; artificial intelligence; critical technology for sensors and actuators; big data and analytics. For these sectors, CYBER is a critical technology of national strategic importance.
Improper use of this technology can entail significant risks not only for the confidentiality of user data, but also for the possible transfer of significant security information.
The purpose of the Government’s provisions is to create a network of measures that safeguard: the autonomy of Pirelli & C. S.p.A and its management; the security of procedures; the protection of information of strategic importance; the company’s know-how.
As well as confirming the commitments undertaken by China National Tire and Rubber Corporation, Ltd., the Government’s decision equips Pirelli with a range of tools to protect the strategic asset, including strategic industrial security clearance that provides for information access restrictions. The company Pirelli will also set up an autonomous organisational unit for security.
For certain strategic board decisions, the Government’s provisions also require a vote of at least 4/5 of the board of directors.
Implementation of the provisions will be monitored by the Ministry in charge.