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VW Eyes 6 Billion Euro Sale of Heavy Engine Unit
15 Jan
Summary
- Volkswagen is considering selling its heavy diesel engine unit, Everllence SE.
- Several private equity firms are reportedly interested in acquiring the unit.
- The potential deal values Everllence between €5 billion and €6 billion.
Volkswagen AG is reportedly in discussions to sell a majority stake in its heavy diesel engine division, Everllence SE, as part of a broader strategy to enhance profitability and simplify its extensive business portfolio. The German automotive giant is facing pressure from technological shifts, market demand fluctuations, and increasing competition.
Several prominent private equity firms, including EQT AB, CVC Capital Partners, Advent, Bain Capital, KPS Capital Partners, and Clayton Dubilier & Rice, are said to be considering bids. Singapore's sovereign wealth fund GIC Pte and Japanese trading firm Mitsui & Co. may also be interested in acquiring the unit, which could be valued between €5 billion and €6 billion.
This potential divestment follows other strategic moves by Volkswagen, such as Audi's sale of a majority stake in Italdesign Giugiaro SpA. Everllence, formerly known as MAN Energy Solutions SE, generated €337 million in earnings before interest and taxes on revenues of €4.3 billion in 2024.
