FountainVest has secured approval from the Italian government to acquire a controlling stake in EuroGroup Laminations, paving the way for a take-private transaction after months of regulatory scrutiny, Reuters reported.

The Chinese private equity firm received clearance under Italy’s so-called golden power regime, which allows the state to impose conditions on transactions involving strategic assets. The approval was granted subject to unspecified conditions, according to a document sent to parliament.

Under the agreed transaction, FountainVest will acquire the 45.7% stake held by EMS Euro Management Services at €3.85 per share. EMS will reinvest 50% of the sale proceeds into a newly formed holding company jointly owned with FountainVest. Following completion, expected in the first half of 2026, the vehicle will control 55.3% of EuroGroup Laminations’ voting share capital.

Founded in 1967 near Milan, EuroGroup Laminations is a global supplier of stators and rotors used in electric vehicles and industrial machinery. The company attracted private equity interest in 2020, when Tikehau Capital acquired a 30% stake through its energy transition fund.

EuroGroup listed in Milan in 2023, raising €250m at €5.50 per share, valuing the business at about €922m. Its market capitalisation has since fallen by roughly two-thirds, reflecting slower-than-expected electric-vehicle adoption and rising geopolitical strains affecting global supply chains.

Italy has increasingly relied on its golden power rules to scrutinise foreign acquisitions, drawing criticism from parts of the business community and EU officials concerned about excessive intervention. EuroGroup said EMS would continue working with FountainVest to secure remaining regulatory approvals in Mexico and India.

Shares in EuroGroup Laminations rose sharply following the Reuters report, signalling investor relief after regulatory uncertainty weighed on the stock.

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