According to foreign media reports, people familiar with the matter revealed that the American diesel engine maker Cummins has submitted a reference offer to Volkswagen Group or intends to acquire Volkswagen's Mann Energy Solutions company. Earlier in May, Volkswagen announced that it was seeking to sell Mann Energy Solutions or enter into cooperation with other companies in order to reduce its diversified product portfolio and streamline its business.
According to foreign media reports, people familiar with the matter revealed that the American diesel engine maker Cummins has submitted a reference offer to Volkswagen Group or intends to acquire Volkswagen Mann Energy Solutions. Earlier in May, Volkswagen announced that it was seeking to sell Mann Energy Solutions or enter into cooperation with other companies in order to reduce its diversified product portfolio and streamline its business.
Volkswagen Group currently has 12 sub-brands, including cars, trucks, public buses, motorcycles and electric bicycles. Mann Energy Solutions mainly produces large diesel engines for ships and generators, formerly known as MAN Diesel & Turbo, and also produces turbochargers for the oil and gas industry.
Sources revealed that Volkswagen has entered into negotiations with Cummins and has received Cummins' offer to acquire Mann Energy Solutions. In this regard, a Cummins spokesperson said, "We will not comment on relevant rumors or speculation in the market." On July 19 local time, a spokesman for the Volkswagen Group reiterated that the company is evaluating all the acquisitions of Mann Energy Choose, but declined to comment further on the matter.
It is reported that although Volkswagen has not designated a consulting bank for the sale, it has approached a number of companies to assess their interest in acquiring Mann Energy Solutions. The sale price of Mann Energy Solutions is expected to be around 3 billion euros. In order to make the company sell at a higher price, Volkswagen also worked with Advent's engine manufacturer Jenbacher (formerly a GE business unit) and at least one in Asia. Peers negotiated. Mitsubishi Heavy Industries and Wärtsilä have also been considered potential bidders for Mann Energy.
One source revealed that Volkswagen initially wanted a deal with Cummins, but is currently negotiating with some other bidders. Volkswagen hopes to finalize the agreement by the end of the year.