Volkswagen approaches potential companies to sell MAN Energy Solutions
Category: #business  By Nikita Chaurasia  Date: 2019-05-07
  • share
  • Twitter
  • Facebook
  • LinkedIn

Volkswagen approaches potential companies to sell MAN Energy Solutions

VW anticipated MAN Energy Solutions to reach a valuation of around €3 billion ($3.36 billion) in a potential sale

German automotive manufacturing giant Volkswagen has reportedly approached several companies who can be potential buyers of MAN Energy Solutions, which makes large diesel engines for power generators and ships.

Sources familiar with the matter informed that Herbert Diess, Volkswagen Chief Executive, is working to simplify and slim down the group, which comprises of 12 brands, buses, cars, trucks, electric bicycles, and motorbikes as part of its global business.

Apparently, Volkswagen has not yet commenced a formal sales process or selected an adviser for the sale of the company, however, it has contacted competitors in the engine manufacturing business such as private-equity owned Jenbacher, Wartsila and Cummins.

Sources further stated that the company anticipates MAN Energy Solutions to reach a valuation of around 3 billion euros ($3.36 billion) in a potential sale.

Seemingly, the business previously known as MAN Diesel & Turbo, also produces turbochargers used in the oil and gas industry and in 2018, it had reported operating revenues of 133 million euros on sales of 3.1 billion euros.

It could attract interest from Alfa Laval, Mitsubishi Heavy and also from private equity groups including Cinven, Bain, and EQT if it is put up for sale formally, sources mentioned.

The potential sales process comes after earlier in the year Volkswagen decided to cancel plans for an IPO of its Traton trucks division, which consists of Scania, Volkswagen Caminhoes e Onibus and MAN brands.

For the uninitiated, MAN Energy Solutions was a part of VW’s trucks brand MAN initially, but last year some of the assets of MAN were transferred to Volkswagen as part of efforts to modernize Traton ahead of the planned listing.

Volkswagen Group is a German-based multinational auto maker headquartered in Wolfsburg, Lower Saxony. The company is into manufacturing, designing, and distributing commercial and passenger vehicles, turbomachinery, engines, and motorcycles and provides related services including leasing, financing, and fleet management.

Source credit: https://in.reuters.com/article/volkswagen-unit-divestiture/volkswagen-sounds-out-buyers-for-man-energy-solutions-sources-idINKCN1SC1CM

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Atkore announces acquisition of Rocky Mountain Colby Pipe Co. assets
Atkore announces acquisition of Rocky Mountain Colby Pipe Co. assets
By Nikita Chaurasia

Atkore expands product portfolio with acquisition of Cor-Tek™ by Rocky Mountain  Atkore International Group Inc., a US-based electric solutions provider recently announced acquisition of assets of Rocky Mountain Colby Pipe Co., a front-ru...

Self-driving tech firm Waymo’s cars to be rain-tested in Florida
Self-driving tech firm Waymo’s cars to be rain-tested in Florida
By Nikita Chaurasia

Waymo is about to rain test some of its autonomous vehicles in Florida. The company wants to check if the autonomous driving technology withstands the heavy rainfall of the U.S state. The test aims to check how the vehicle's sensor suite includin...

Google blocks some data on Android devices for wireless carriers
Google blocks some data on Android devices for wireless carriers
By Nikita Chaurasia

Google decided to take this step over the fear of increasing data privacy problems across the world.   This step has disappointed the carriers using the service for various decision making processes like deciding where to upgrade and extend ...