Czech billionaire Michal Strnad buys 14% of Italy's Pirelli from China

Michal Strnad, a Czech billionaire, acquired a 14 percent stake in Italian tyre maker Pirelli & C. SpA for €987 million (about CZK 24.5 billion) from the Chinese state‑owned group Sinochem. After the deal Sinochem will retain a 20 percent holding. The purchase was made through Strnad’s investment vehicle Lumina Crown, which is not part of the Czechoslovak Group conglomerate.

The transaction comes as European regulators seek to curb Chinese influence in strategic companies. Pirelli, which recently introduced sensor‑equipped “Cyber Tyre” products, has attracted scrutiny in the United States over potential data‑security risks linked to its Chinese shareholder. A Chinese foreign‑ministry spokesperson said Beijing supports fair, non‑discriminatory conditions for its firms abroad.

Strnad’s move highlights the growing role of Czech capital in European mergers and acquisitions. Outward foreign‑direct investment by Czech entities has more than quadrupled since 2014, reaching roughly $74 billion, the second‑largest increase in the EU after Luxembourg and Romania. Czech central‑bank officials note that rising dividend inflows from overseas holdings could improve the country’s current‑account balance.