FAW bid for Iveco would be subject to Italy's 'golden powers' veto

31 Oct.,2022

 

Faw Truck

ROME -- If vehicle maker CNH Industrial decides to sell its Iveco truck unit to China's FAW the move would have to be approved first by the Italian government, the industry minister said on Thursday.

CNH Industrial said recently that it could consider alternatives to a planned spin-off and separate listing of its truck and bus business and that it was in talks with FAW over the future of Iveco.

In case of takeovers in key industries involving assets deemed of national interest, Rome can use its so-called "golden powers", allowing it to veto or impose strict conditions on such deals.

Asked whether Rome could exercise such powers over a potential Iveco sale, Industry Minister Giancarlo Giorgetti said the government would start an inquiry into the matter should the transaction materialize.

"It's safe to say that this matter objectively falls into the golden power regulation, so it means we'll use it," he said during a press conference.

CNH Industrial declined to comment.