Volkswagen receives preliminary bids of $9.4 billion for Everllence

Volkswagen has received preliminary bids valuing its diesel engine division, Everllence, at around 8 billion euros ($9.44 billion) including debt, according to sources familiar with the discussions. The valuation exceeds some analysts’ estimates and marks one of the largest European corporate carve-outs this year.

Private equity firms such as Brookfield, CVC, and Blackstone are among the bidders for Everllence, which produces shipping engines and heat pumps. Japanese diesel engine manufacturer Yanmar has also submitted a bid. Meanwhile, Porsche SE, Volkswagen’s largest shareholder, is reportedly considering an investment in the unit, News.Az reports, citing Reuters.

Volkswagen asked for bids in mid-February and recently notified some parties that they are advancing to the second round. Binding offers are expected in the next six weeks, according to sources who spoke on condition of anonymity.

The sale reflects broader trends of major companies streamlining non-core but high-quality industrial assets, which are increasingly attractive to buyout funds seeking investments unlikely to face disruption from emerging technologies such as AI.

News.Az 

By Aysel Mammadzada