Blackstone and Yanmar Holdings are among potential bidders considering offers for a majority stake in Everllence, Volkswagen’s heavy diesel engine business, according to Bloomberg.

Brookfield Asset Management has also been analysing the asset, while Turkish energy group Karpowership, a key Everllence customer, could participate in a consortium. Some private equity firms are expected to partner with strategic buyers.

Bloomberg has previously reported that EQT and CVC Capital Partners are also reviewing the opportunity. The business could be valued at between €5bn and €6bn, equivalent to roughly $5.9bn to $7.1bn, according to people familiar with the process. First-round bids are expected by February 12.

Everllence, formerly known as MAN Energy Solutions, manufactures large diesel engines and turbines used in ships and power plants. The business generated €337m in earnings before interest and taxes on revenue of €4.3bn in 2024, according to Volkswagen’s annual report.

The unit is headquartered in Augsburg, Germany, and operates globally. Yanmar, founded in 1912, produces engines and industrial equipment across agriculture, construction, marine, and energy markets, with operations spanning Asia-Pacific, the Americas, Europe, and the Middle East.

Volkswagen is pursuing the sale as part of a broader effort to streamline operations and focus capital allocation. Representatives for Blackstone, Brookfield, Volkswagen, and Yanmar declined to comment, while Karpowership did not respond to requests for comment.

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