Volkswagen to Sell Majority Stake in Everllence to Bain in €7.4 Billion Transaction: Report

Volkswagen will sell a 51 per cent stake in its diesel engine unit Everllence to Bain Capital in a deal worth about €7.4 billion ($8.4 billion), while retaining the remaining 49 per cent stake, Reuters reported on Thursday. The sale is expected to generate fresh funds for the struggling German carmaker as it pursues cost-cutting measures across its automotive business.

Under the agreement, Volkswagen will sell a 51 per cent stake in Everllence to Bain Capital while retaining the remaining 49 per cent shareholding for the medium term, according to a statement issued by the German manufacturer on Wednesday.

The transaction is set to rank among the largest industrial carve-outs in Europe this year and comes as Volkswagen seeks to strengthen its finances while implementing significant cost-cutting measures across its automotive operations.

“Leaner structures and processes will give Everllence the opportunity to achieve further growth in attractive markets such as data centers, the energy sector and shipping. At the same time, it will allow us to focus even more strongly on our core business,” Volkswagen CEO Oliver Blume was quoted as saying by Reuters.

Bain emerged ahead of competing bids from CVC and EQT. 

The latter was part of a consortium that included Porsche SE and Qatar. Porsche SE controls 53.3 per cent of Volkswagen’s voting rights, while Qatar’s sovereign wealth fund holds a 17 per cent stake.

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Everllence, previously known as MAN Energy Solutions, manufactures diesel engines for the shipping sector. The company is also targeting growth opportunities linked to artificial intelligence (AI), driven by rising demand for generators used to power data centres.

The transaction remains subject to employee consultations and regulatory approvals. Volkswagen said it aims to complete the process before the end of the year.

As part of the agreement, Everllence’s facilities in Augsburg, Oberhausen, Berlin, Hamburg and Ravensburg will remain in place under the new ownership structure until at least the end of 2030.