State-owned chemical giant China National Chemical Corp (ChemChina) is set to acquire a controlling stake in Pirelli, the world's fifth-largest tire maker.

Analysts said the takeover will allow ChemChina to gain the branding assets of the Italian company, which is nearly 150 years old, and to access the technology for making premium tires.

In turn, Pirelli will gain the capital needed to develop new technology and possibly secure a greater share of the fast-growing Chinese market, they said.