EQT is partnering with the Qatar Investment Authority and Porsche Automobil Holding as it prepares a binding offer for Volkswagen’s marine engine division, Everllence, in a deal that could value the business at more than €8bn, according to a report by Bloomberg.
The report cites unnamed sources familiar with the process as highlighting that Volkswagen has asked interested parties to submit the next round of bids in early June. EQT is expected to participate through a consortium that includes QIA and Porsche Automobil, both of which are significant Volkswagen shareholders.
The consortium is competing against rival private equity bidders including Bain Capital and CVC Capital Partners for the marine engines business, which Bloomberg previously reported could command a valuation of at least €8bn.
The involvement of QIA and Porsche Automobil is expected to strengthen EQT’s position by adding both substantial financial backing and shareholders with longstanding ties to Volkswagen. Porsche Automobil and QIA together control roughly 70% of Volkswagen’s voting rights.
Members of the Porsche-Piëch family currently occupy three seats on Volkswagen’s supervisory board, while QIA holds two board positions. Those representatives are expected to recuse themselves from any decisions relating to the sale process.
Representatives for EQT, Volkswagen, QIA and Porsche Automobil reportedly declined to comment on the matter.
QIA’s participation also highlights the continued appetite among sovereign wealth funds for large-scale international transactions despite heightened geopolitical tensions in the Middle East. The fund has remained active across private markets, recently committing $500m to General Atlantic growth strategies and participating in several high-profile transactions and funding rounds.
Everllence is a leading manufacturer of two-stroke marine engines used in commercial shipping vessels that underpin a significant share of global trade flows. One of its main competitors is Finnish engineering group Wärtsilä.
EQT has previously partnered with the Porsche-Piëch family on investments including transport operator Flix SE.
