Blackstone and Brookfield Compete for €8 Billion Volkswagen Unit in Major Asset Sale

Blackstone and Brookfield have emerged as front-runners in the competitive bidding process for Volkswagen’s Everllence, a unit valued at €8 billion, according to sources familiar with the matter. The transaction, driven by Volkswagen’s strategy to streamline its portfolio and focus on electric vehicle development, includes Everllence’s advanced powertrain and software engineering assets based in Augsburg, Germany. The firm was established in 2021 as a joint venture between Volkswagen Group and its former supplier, Vitesco Technologies, before being fully acquired by Volkswagen in 2023. The €8 billion valuation reflects the growing premium placed on automotive software, electrification infrastructure, and next-generation drivetrain systems. Everllence employs over 4,500 engineers and technicians across five European sites, with a strong focus on high-efficiency electric motors and integrated power electronics. The sale is expected to close by the third quarter of 2026, pending regulatory approval and final bid evaluation. Market participants view the transaction as a significant signal of private equity’s increasing appetite for industrial technology assets with strong growth potential. If finalized, the deal would represent Blackstone’s largest European industrial acquisition to date and expand Brookfield’s footprint in automotive innovation. The outcome could reshape competition in the automotive supply chain, particularly in high-performance electric components. Employees, suppliers, and regional governments in Bavaria are closely monitoring the sale, with concerns about job security and technology transfer. However, Volkswagen has assured stakeholders that no immediate changes to operations are expected during the transition. The deal is also being watched by other automakers and tech firms eyeing strategic acquisitions in the evolving EV ecosystem.