F1 tyre supplier Pirelli is set to come under new Chinese ownership after shareholders agreed to a 7.1 billion euro deal with the ChemChina group.

Under the new deal, ChemChina - which is Chinese state-owned - will initially take a 26 per cent stake in the company before launching a full takeover bid.

According to Reuters, the bid will be launched by a vehicle controlled by the Chinese state-owned group and part-owned by current owners Camfin investors, who include Pirelli boss Marco Tronchetti Provera, Italian banks UniCredit and Intesa Sanpaolo, and Russia's Rosneft.

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In doing so, it will bring Pirelli under his tyre-making division and take the company private, in turn bolstering one of the world's largest tyre brands both financially and in terms of market footprint.

Indeed, the acquisition would see Pirelli offer its know-how and technology to China National Tire & Rubber Company - an offshoot of the ChemChina group -, as well as give Pirelli crucial gains in the vast Chinese market that will allow it to challenge the might of Michelin, Continental and Bridgestone.

With Pirelli set to receive a new ChemChina appointed chairman as part of the deal, it remains to be seen if the new ownership will have an effect on Pirelli's Formula 1 involvement, which comes at a time when a new tender for the exclusive tyre supply is imminent. Pirelli has already expressed its desire to get a quick decision on upcoming regulations before it commits to applying for a new contract.