Czech arms tycoon buys 14% Pirelli stake from Sinochem

Michal Strnad, the 33-year-old Czech arms tycoon behind Czechoslovak Group, has acquired a 14% stake in Pirelli from China's Sinochem in a deal valued at approximately €987 million, reshaping the Italian tire maker's shareholder structure and easing years of political tension over Chinese influence in one of Italy's corporate crown jewels.

The Deal

The transaction, disclosed on Wednesday, was executed as a block trade through Strnad's investment vehicle Lumina Crown, which purchased nearly 152 million Pirelli shares at €6.50 each. Sinochem's stake falls from 34.1% to 20.1%, making it Pirelli's second-largest investor, while Camfin — the holding company of Executive Chairman Marco Tronchetti Provera — returns to the top position with a 26% stake. Strnad becomes the third-largest shareholder.marketscreener+1

Jefferies advised Lumina Crown while BNP Paribas acted for Sinochem.reuters

Political Context

The sale draws a line under years of friction between Pirelli's main investors following Italy's repeated use of "golden power" rules to curb Sinochem's influence at the company. Rome intervened twice — in 2023 and earlier in 2026 — restricting the Chinese state-owned conglomerate's board representation to three seats out of 15 and barring its appointees from holding key executive positions. Sinochem will continue to face golden power constraints as long as it holds a stake above 10%.marketscreener+1

Strnad's Expanding Empire

The acquisition reflects Strnad's ambition to build a private investment empire across Europe and the United States. He became one of eastern Europe's wealthiest individuals after Czechoslovak Group listed on Euronext Amsterdam in January 2026, generating proceeds of €3 billion while he retained roughly 85% of the company — a stake now worth more than €14 billion. CSG already owns Italian brands Fiocchi Munizioni and Armi Perazzi.bloomberg+1

Strnad described the Pirelli investment as aligned with a strategy of backing market leaders with "durable competitive advantages, global brands and solid growth prospects". Whether the 14% holding represents a final position or a stepping stone toward a larger stake remains an open question.marketscreener