ROME, Jan 14 (Reuters) - Asian private equity firm FountainVest secured backing from the Italian government to buy a majority stake in electric motor component maker EuroGroup Laminations, a document
FountainVest Receives Approval for EuroGroup Laminations Stake Acquisition
FountainVest's Strategic Investment in EuroGroup Laminations
By Giuseppe Fonte and Valentina Za
Details of the Acquisition
ROME, Jan 14 (Reuters) - Chinese private equity firm FountainVest has secured the Italian government's approval to buy a major stake in EuroGroup Laminations, a document seen by Reuters showed, under a plan to take the electric motor component maker private.
Market Reaction
Shares in EuroGroup Laminations rose as much as 8.7% following the Reuters report, before paring some gains.
Regulatory Context
The Italian government cleared the deal on December 29 by imposing some unspecified conditions under so-called golden power rules aimed at shielding strategic assets, stated the document, which was sent to parliament.
FOUNTAINVEST TO TAKE EUROGROUP PRIVATE IN MID-2026
Founded in 1967 near Milan, EuroGroup Laminations is a leading global supplier of stators and rotors for electric vehicles.
It first attracted private equity interest in 2020 when France's Tikehau Capital bought a 30% stake through its energy transition fund.
EuroGroup listed in 2023 in Milan, raising 250 million euros in fresh capital at 5.50 euros a share. Its initial market value of around 922 million euros has since plunged by roughly two-thirds.
Italy has made extensive use of its golden powers to block or set conditions on domestic and foreign takeovers, triggering criticism from companies and European Union authorities, which have warned against excessive interference in business matters.
EMS Euro Management Services last year agreed to sell its 45.7% stake in EuroGroup Laminations to an investment vehicle owned by FountainVest for 3.85 euros ($4.48) per share.
Established in 2008, FountainVest has offices in Shanghai, Hong Kong, Beijing, Singapore, Frankfurt, with senior advisers and staff based in Europe, Asia and North America.
Under the transaction, which envisages a buyout offer aimed at delisting EuroGroup Laminations, EMS Euro Management Services would reinvest 50% of the proceeds from the sale into a new holding company set up with FountainVest to own the target firm.
At the closure of the deal, expected in the first half of 2026, the new holding would own 55.3% of the voting share capital in EuroGroup Laminations.
($1 = 0.8589 euros)
(Reporting by Giuseppe Fonte and Valentina Za; Editing by Gianluca Semeraro, Sharon Singleton and Joe Bavier)
