Private equity firms are lining up to pursue a potential acquisition of Volkswagen’s heavy diesel engine unit Everllence SE, in a transaction that could value the business at up to €6bn, Bloomberg reported.

People familiar with the matter said a majority stake in Everllence has attracted interest from buyout groups including EQT, CVC Capital Partners, Advent, Bain Capital, KPS Capital Partners, and Clayton Dubilier & Rice. EQT is considering a bid alongside Singapore sovereign wealth fund GIC, the people said.

First-round bids are expected by 12 February, although deliberations are ongoing and no deal is guaranteed. Volkswagen confirmed it is reviewing strategic options for Everllence but declined to comment further.

The potential sale comes as Volkswagen faces mounting pressure to improve profitability and simplify its portfolio amid technological disruption, weaker demand in key markets, and intensifying competition from electric vehicle rivals.

Formerly known as MAN Energy Solutions, Everllence manufactures ship engines and power-plant turbines. The business generated €337m in earnings before interest and taxes on revenues of €4.3bn in 2024, according to Volkswagen’s annual report.

Volkswagen has been working with Goldman Sachs and JPMorgan Chase on the potential disposal, Bloomberg previously reported. The transaction would represent one of Europe’s largest industrial carve-outs and underscores private equity’s continued appetite for complex corporate separations.

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