The designated successor to Pirelli & C. SpA Chief Executive Officer Marco Tronchetti Provera is leaving the company, according to people familiar with the matter.
Giorgio Bruno, currently Pirelli’s deputy CEO, had been slated to lead the Formula 1 tiremaker after a new board is appointed later this year. Bruno plans to pursue other entrepreneurial interests, some of the people said.
Pirelli shares fell as much as 3.3% in Milan trading after the Bloomberg report.
The succession plan was part of a proposed shareholder pact between China’s Sinochem International Corp., the company’s largest shareholder, and Tronchetti’s Camfin SpA holding company.
But the pact has now been radically modified by the Italian government, which moved to curtail Sinochem’s influence over the tiremaker through its sweeping “Golden Power” facility.
Under a June 16 Italian government ruling, Camfin — rather than Sinochem — will have the right to nominate the company’s next CEO.
Read More: Italy Gives Camfin Right to Name Pirelli CEO, Curbing China
The departure could be announced as early as this week, said the people, asking not to be named discussing confidential decisions. The change in succession could pave the way for Tronchetti to shore up his leadership at Pirelli, which he’s headed for about 30 years.
Bruno had been seen as Tronchetti’s heir ever since co-CEO Angelos Papadimitriou stepped down in 2021. A representative for Pirelli declined to comment while Bruno couldn’t immediately be reached for comment.
(Updates with chart, share move from third paragraph.)
