Chinese private equity firm FountainVest has secured the Italian government’s approval to buy a major stake in EuroGroup Laminations, a document showed, under a plan to take the electric motor component maker private.
Shares in EuroGroup Laminations rose as much as 8.7% following the Reuters report, before paring some gains to close 3.5% higher at 3.5 euros each.
Italy’s government cleared the deal by imposing some unspecified conditions under so-called golden power rules aimed at shielding strategic assets, stated the document, which was sent to parliament on December 29 but published on Wednesday.
In confirming the news, EuroGroup Laminations said that its current leading shareholder, EMS Euro Management Services, would work with FountainVest to secure pending authorisations from the competent authorities in Mexico and India.
FOUNTAINVEST TO TAKE EUROGROUP PRIVATE IN MID-2026
Founded in 1967 near Milan, EuroGroup Laminations is a leading global supplier of stators and rotors for electric vehicles and other machinery.
It first attracted private equity interest in 2020 when France’s Tikehau Capital bought a 30% stake through its energy transition fund.
EuroGroup listed in 2023 in Milan, raising 250 million euros in fresh capital at 5.50 euros a share.
Its initial market value of around 922 million euros ($1.07 billion) has since plunged by roughly two-thirds, due to fading optimism over a rapid electric-vehicle transition and mounting geopolitical strains hurting global supply chains.
Italy has made extensive use of its golden powers to block or set conditions on domestic and foreign takeovers, triggering criticism from companies and European Union authorities, which have warned against excessive interference in business matters.
EMS Euro Management Services last year agreed to sell its 45.7% stake in EuroGroup Laminations to an investment vehicle owned by FountainVest for 3.85 euros per share.
Established in 2008, FountainVest has offices in Shanghai, Hong Kong, Beijing, Singapore and Frankfurt, with senior advisers and staff based in Europe, Asia and North America.
Under the transaction, which envisages a buyout offer aimed at delisting EuroGroup Laminations, EMS Euro Management Services would reinvest 50% of the proceeds from the sale into a new holding company set up with FountainVest to own the target firm.
At the closure of the deal, expected in the first half of 2026, the new holding would own 55.3% of the voting share capital in EuroGroup Laminations.
Source: Reuters.com