FILE PHOTO: The new logo of German car maker Volkswagen is pictured during a preview of the world’s biggest car maker, at the international motor show in Frankfurt, IAA, in Frankfurt, Germany on the 9th of September 2019. REUTERS/Wolfgang rattay
FRANKFURT (Reuters) – German automotive and defense supplier Rheinmetall, and the engineering group Voith will compete for the transmission maker, Renk, of which Volkswagen VOWG_p.DE has put up for sale in order to free up funds for investment in electric vehicles, and to people close to the matter said.
The industry groups are among those that are expected to submit first-round bids for the Renk due to a mid-October deadline, ” she said. The bids will be able to give the company an enterprise value of some 700 million euros ($769.37 million).
The Private equity groups KKR, Carlyle and Advent, are also among the potential suitors, while at the defense firm KraussMaffeiWegmann the importance of the expected to be muted, she said, adding that the signing of the agreement is not expected for the following year.
Voith, Rheinmetall, and Carlyle declined to comment, while the other candidates were not immediately available for comment. Volkswagen declined to comment on the specifics of the deal, which is to say that you are working on a future-proof solution for Renk in the broader context of the development of a growth potential for the group’s mechanical engineering division.
Reporting by Arno Schuetze; Editing by Tassilo Hummel,