Private equity firm Bain Capital is in advanced talks to acquire a controlling stake in Volkswagen AG’s heavy‑diesel engine subsidiary Everllence. Sources say the bid would outmaneuver rivals CVC Capital Partners and an EQT‑led consortium that includes Porsche Automobil Holding and Qatar Investment Authority. The transaction would mark the largest PE purchase in Europe this year. A definitive agreement remains pending, and representatives for all parties declined comment.

Everllence, a leading maker of two‑stroke marine engines that power roughly 90 % of global trade, could be valued at €8 billion or more. Bankers have lined up up to €6.5 billion of debt financing to back the transaction. Volkswagen seeks to divest the unit to streamline operations and shore up earnings as its core automotive business struggles in a soft Chinese market.

The deal reflects a broader shift as private‑equity firms chase industrial assets to offset volatility in software‑focused portfolios. For Volkswagen, proceeds from the sale bolster its balance sheet amid cost‑cutting measures, including a plan to cut 50,000 German jobs by decade’s end. Closing the Everllence transaction would deliver a tangible cash infusion and reduce the group’s exposure to non‑core businesses.