Blackstone, EQT and CVC among bidders for Volkswagen’s Everllence unit – report

Volkswagen has received indicative offers from backstage equity houses for Everllence, the group’s portion that makes marine engines and vigor pumps, arsenic the carmaker advances plans to trim its involvement successful the business.

According to the Financial Times, the suitors see Blackstone, EQT and CVC.

The first-round bidding deadline passed past week.

Sources acquainted with the substance said imaginable buyers are pricing Everllence, formerly MAN Energy Solutions, astatine astir €5bn ($5.9bn) to €6bn.

Those radical added that different fiscal sponsors, specified arsenic CD&R and KPS, had antecedently explored a bid, portion immoderate concern competitors besides reviewed the opportunity.

Volkswagen is looking astatine carving retired the plus by selling a controlling involvement but intends to stay invested done a ample number shareholding.

A merchantability would enactment Volkswagen’s broader reshaping efforts amid softer request and expanding competitory unit from Chinese car manufacturers.

Volkswagen has besides highlighted stronger currency procreation than expected, reporting nett currency travel of €6bn from its automotive part successful 2025 arsenic it pursues outgo reductions.

The Everllence process is taking spot alongside Continental’s auction of ContiTech, its belts and hoses operation.

Continental, headquartered successful Hannover, is seeking to ore its activities connected tyres.

The 2 transactions travel arsenic the European automotive manufacture grapples with contention from China and a slower modulation to electrical vehicles than antecedently anticipated.

One German concern banker said it was “a precise uncommon concern wherever you person precise akin assets successful the aforesaid state astatine the aforesaid time”.

Continental has kept to its program to merchantability ContiTech this year, contempt the overlap with Volkswagen’s auction and a nett informing astatine the portion past month.

ContiTech posted an operating nett borderline of 4.9% successful 2025 aft a anemic 4th quarter, falling abbreviated of the company’s people range.

Even so, a idiosyncratic acquainted with Continental’s reasoning said the tyremaker believes determination remains a “good deal” disposable successful ContiTech and has been outlining the division’s imaginable upside to investors.

Volkswagen and Continental’s efforts to dispose of non-core assets reflector steps taken by different ample European concern groups that are streamlining portfolios portion managing volatile vigor prices, rising costs linked to biology regularisation and unit from Chinese imports.

Private equity firms person been drawn to these situations, seeing imaginable to assistance show done further investment.

Representatives for Volkswagen, Blackstone, EQT, CVC, CD&R and KPS refused to comment.