Investing.com -- Pirelli & C (BIT: PIRC ). SpA, the Italian tiremaker, has taken a significant step towards reducing the influence of its major shareholder, China’s Sinochem. This decision was made on Monday according to Bloomberg, citing individuals knowledgeable about the situation.

The board of the Milan-based company voted in favor of reducing the governance status of Sinochem, a Chinese conglomerate that owns approximately 37% of Pirelli. This decision was made following a request from regulators, stated the sources.

This change in governance status does not require Sinochem to sell its stake in Pirelli. However, it effectively creates a financial separation between the two companies, the knowledgeable individuals said, requesting anonymity as the decision is not yet public knowledge.

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