EU Commission approves Bain Capital's takeover of VW subsidiary Everllence

The European Commission has given the green light for the acquisition of Everllence, a major manufacturer of large engines and turbines, by the US investment firm Bain Capital. The approval signifies that the proposed transaction does not raise any competition concerns within the European Union. The deal involves Bain Capital acquiring a 51% stake in Everllence, which was previously a subsidiary of the automotive giant Volkswagen.

Volkswagen announced its agreement with Bain Capital for this acquisition in late June. The sale is expected to generate approximately 7.4 billion euros for the German automaker. This move aligns with Volkswagen's ongoing strategy to streamline its operations and concentrate more intensely on its core automotive business. By divesting non-core assets like Everllence, VW aims to enhance its focus and efficiency in its primary markets.

For Bain Capital, the acquisition represents a strategic entry into the market for large engines and turbomachinery. The EU Commission's role in such large corporate takeovers is to scrutinize whether the deal could lead to significant restrictions on free competition. Having found no such issues with the Everllence deal, the commission has granted its approval, paving the way for the transaction to proceed.

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The sale of 51 percent of the shares of the former Volkswagen subsidiary to Bain Capital does not raise competition law concerns.