ChemChina's takeover of Pirelli could spell new lease of life for SOE sector

Another Chinese company is in an international expansion mode. This time it is China National Chemical Corp, better known as ChemChina, which aims to take control of one of the world's top tire brands, Pirelli & C. SpA of Italy.

Initially, ChemChina will acquire a 26 percent stake in Pirelli with an investment just shy of $2 billion. But a general tender is expected soon after for the remaining Pirelli shares, which would take the total investment to approximately $7.4 billion.

The deal would be the largest cross-border acquisition by a State enterprise since China National Offshore Oil Corp invested about $15 billion in Canada-based Nexen Inc in 2012.