April 22 (Reuters) - Volkswagen AG has selected bidders for the next round of bidding for its heavy diesel engine unit Everllence, Bloomberg News reported on Wednesday, citing people familiar with the
Volkswagen selects next-round bidders for Everllence, Bloomberg News reports
Volkswagen's Everllence Division Attracts Major Bidders
April 22 (Reuters) - Volkswagen AG has selected three suitors for the next round of bidding for its heavy diesel engine division Everllence, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Selected Bidders for Everllence
CVC Capital Partners, Bain Capital and a consortium involving buyout firm EQT AB and Porsche SE have been invited to participate in the next round, the report said.
Conditions of the Sale
Volkswagen will condition the sale of a majority stake in Everllence on Porsche SE becoming a co-investor of about 10% in the maker of large marine engines, Reuters had reported exclusively last month.
Porsche SE's Role and Background
Porsche SE, controlled by the Piech and Porsche families, is Volkswagen Group's top investor.
Market Response and Comments
Reuters could not immediately verify the report. Volkswagen, Porsche SE, Bain Capital, and CVC Capital declined to comment, while EQT did not immediately respond to a Reuters request.
Strategic Rationale for Divestment
A move to divest Everllence, formerly known as MAN Energy Solutions, could allow the German carmaker to focus more on its core automotive business as it navigates steep tariffs, competition from China and a costly pivot to electric vehicles.
Valuation and Deal Timeline
Reuters has previously reported that Volkswagen has received bids valuing Everllence at around 8 billion euros ($9.38 billion) including debt, and that a deal is expected by summer.
Currency Exchange Rate
($1 = 0.8527 euros)
Reporting Credits
(Reporting by Rhea Rose Abraham in Bengaluru; Editing by Tasim Zahid, Sahal Muhammed and Vijay Kishore)
