Ferretti Group involved in alleged industrial espionage case

Ferretti S.p.A., one of the world’s most prestigious yacht builders, is at the center of a complex legal case that intertwines luxury, geopolitics, and cyber-surveillance. As reported by Bloomberg and confirmed by sources close to the investigation—as well as by an official statement from the company—the Milan Public Prosecutor’s Office is investigating the discovery of listening devices installed in the company’s Milan offices.

The affair began in early April 2024, when Xu Xinyu, Executive Director on the Board of Ferretti S.p.A. and representative of the group’s main shareholder—Chinese conglomerate Weichai Group—noticed suspicious activity near the company's Milan headquarters, located in an elegant 18th-century building. Unknown individuals had been repeatedly spotted near the building and hotels frequented by Xu. Concerned for his safety, Xu hired a private counter-surveillance firm, which on the night of April 3 discovered hidden microphones and signal amplifiers inside his desk and other rooms, including the offices of the board secretary and the Chinese-Italian translator.

The company later confirmed it was the injured party, denouncing the “unlawful and improper installation of surveillance devices” and stating that it had already filed a formal complaint with the public prosecutor’s office. The ongoing investigation has developed into two separate criminal proceedings, one of which was initiated in May 2024 following a complaint by Xu and his team, citing unauthorized access to IT systems and unlawful interference with personal privacy.

Although still in its preliminary phase, the inquiry has already raised questions regarding the group’s governance and internal dynamics. In the months leading up to the incident, tensions had reportedly grown between Ferretti’s management and representatives of the Chinese shareholder Weichai, particularly after the presentation of a share buyback plan that could have affected the company’s control structure. The plan, submitted to the Italian government in March, raised concerns among Chinese board members about potential state intervention under Italy’s “golden power” regulations.

In Italy, the government can intervene in corporate transactions involving companies deemed strategic to national interests—a category that includes Ferretti, due in part to its marginal production of vessels for law enforcement and coast guard use. The buyback plan was eventually withdrawn on March 31 during an extraordinary board meeting. Notably, the alleged surveillance activities emerged just after that meeting.

The case also raises concerns regarding market transparency. According to legal experts consulted by Bloomberg, listed companies in Italy are required to publicly disclose any criminal investigations or security breaches. Ferretti, listed in both Hong Kong and Milan, has yet to make this information public to its investors.

The company’s current board of directors includes nine members, six of whom are Chinese. Several sources report that internal divisions have deepened, particularly over disagreements on decision-making power and the use of the golden share. Nevertheless, Ferretti has denied any tension with its majority shareholder, stating that “its relationship with Weichai has been based for over a decade on full and constructive mutual collaboration.”

The Ferretti case reflects broader concerns in Italy about foreign investments in strategic sectors. It is not the first time authorities have exercised golden power over companies with Chinese stakeholders—a notable precedent involved Pirelli, which had to revise its governance to limit the influence of shareholder Sinochem.

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