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

Core Viewpoint - Volkswagen is advancing plans to reduce its stake in Everllence, its unit that manufactures marine engines and heat pumps, with indicative offers received from private equity firms, valuing the unit at approximately €5bn to €6bn ($5.9bn to $7.1bn) [1][2] Group 1: Volkswagen's Strategic Moves - Volkswagen is looking to sell a controlling stake in Everllence while retaining a significant minority shareholding [2] - The sale of Everllence is part of Volkswagen's broader strategy to reshape its business amid declining demand and increased competition from Chinese manufacturers [2][6] Group 2: Financial Performance and Market Context - Volkswagen reported a net cash flow of €6bn from its automotive division in 2025, indicating stronger cash generation than expected [3] - The European automotive industry is facing challenges from competition with China and a slower-than-expected transition to electric vehicles [4] Group 3: Industry Trends and Comparisons - The auction of Everllence coincides with Continental's sale of its ContiTech division, highlighting a trend among European industrial groups to streamline operations amid rising costs and regulatory pressures [6] - Private equity firms are increasingly interested in acquiring non-core assets from large industrial groups, seeing opportunities for performance improvement through further investment [6]