Czech billionaire Michal Strnad is in talks with Sinochem Holdings over the acquisition of the latter’s 14% stake in Pirelli. If completed, the deal would reduce Sinochem’s ownership in the Italian tiremaker to approximately 20%. Based on current market valuation, the transaction is worth more than €1 billion (about $1.14 billion). The negotiations are ongoing and no final agreement has been reached yet; the deal also requires approval from China’s State-owned Assets Supervision and Administration Commission (SASAC). According to informed sources, the two sides have already begun discussing a basic pricing framework, including a premium, and the transaction could be finalized as early as the end of July. In recent years, Pirelli has promoted its Cyber Tyre smart tire technology, which incorporates sensors. Due to concerns over data collection and potential national security implications, this technology has drawn scrutiny in the U.S. regarding the Chinese ownership background. Previously, the Italian government invoked its “golden power” mechanism to restrict Sinochem’s governance rights in Pirelli, including board representation. Recently, Pirelli also restructured its management, appointing former CEO Marco Tronchetti Provera as executive chairman—a move opposed by Sinochem. Should Strnad successfully acquire the stake, his entry—as the controlling shareholder of Czech defense group CSG NV—would further strengthen Pirelli’s European capital profile. Following the news, Pirelli’s shares rose as much as 4.1% on the Milan Stock Exchange, bringing its year-to-date gain to 17%. Neither Strnad, Sinochem Holdings, nor Pirelli commented on the matter.