Iconic Italian tyre firm Pirelli races into Chinese ownership

F1 teams will take to the track in Malaysia on Saturday, but soon they'll be racing Chinese tyres rather than Italian.

The latest pit stop in the race to acquire foreign investments by Chinese companies will see ChinaChem buying a large holding in Pirelli Tyres, a 140 year old Italian firm, and supplier to Formula One cars.

As part of the $7.7bn deal, the chemicals conglomerate will also launch a bid for the remaining stake in the firm.

This acquisition is the latest in a line of Chinese investments in Italy. Stakes have been bought in some of the country's most iconic companies, including Fiat Chrysler Automobiles SpA and oil giant Eni SpA.

Pirelli is the number five tyre manufacturer in the world, but it's hoped this deal will change that, and open up more global business for the Milan based firm.

On paper, the deal will generate more than $2bn in cash for Pirelli's main holding company Camfin, and its biggest owner, Pirelli chairman and chief executive Marco Trochetti Provera.

We asked him why the Chinese wanted to buy his company.