Volkswagen opens first bids for Everllence majority stake

Volkswagen is soliciting first-round bids for a majority stake in its heavy diesel engine subsidiary Everllence, with proposals due by 12 February from potential acquirers including private equity firms and sovereign wealth funds. The automaker expects the carve-out to value the business between €5bn-€6bn (US$5.3bn-US$6.3bn), according to Bloomberg.

Among the private equity groups interested in Everllence are EQT, CVC Capital Partners, Advent, Bain Capital, KPS Capital Partners and Clayton, Dubilier & Rice. EQT is considering a joint bid with Singapore sovereign wealth fund GIC, while Porsche SE—the investment vehicle controlled by Volkswagen’s founding Porsche-Piëch family—has also explored participation. Japanese trading firm Mitsui could potentially submit an offer too.

The Porsche family’s control and influence over Volkswagen has led to several issues over the years; these include concerns over corporate governance shortcomings, conflicts of interest, a history of internal family feuds and power struggles, and a perceived detachment from the interests of minority shareholders and the day-to-day management of Volkswagen. It is likely that minority stakeholders will try to resist an attempt by the family’s investment vehicle to acquire a major stake.

Everllence does not generally supply the automotive industry, but instead manufactures ship engines, power-plant turbines and industrial machinery. The 267-year-old business, which began as Maschinenfabrik Augsburg-Nürnberg in 1758, underwent rebranding from MAN Energy Solutions in June 2025 under the leadership of Chief Executive Uwe Lauber. In recent years, the unit has pivoted towards decarbonisation technologies including green hydrogen production and carbon capture systems.

The sell-off forms one part of Volkswagen’s heavy restructuring efforts, which also include extensive layoffs and redundancy arrangements for its automotive factory workers. The restructuring comes in response to mounting profitability pressures due to technological upheaval and intensifying competition from Chinese automakers. During its Q3 results, the group’s Chief Financial Officer, Arno Antlitz, disclosed that US tariffs cost the group approximately US$6bn on a full-year basis in 2025. This contributed to a squeeze in operating margin, from 7% in 2024 to an expected figure below 3.5% for 2025.

Volkswagen has engaged Goldman Sachs and JPMorgan Chase as advisors on the transaction, which represents one of Europe’s largest-ever industrial carve-outs. In a statement the automaker confirmed it is “currently reviewing strategic options for Everllence”, while continuing to “actively manage its portfolio of business areas that are not part of its core business”. Deliberations remain ongoing and participants could ultimately abandon the transaction.