For several months now, businesss media has been reporting about the possibly sale of MAN Energy Solutions by Volkswagen. End of December, Volkswagen received bids from three companies. Innio, formerly known as Jenbacher and owned by private equity investor Advent, has joined Mitsubishi Heavy Industries and Cummins as serious contenders for owning the company. Hyundai Heavy that sought to make a bid is said to be no longer in the running. MAN Energy Solutions is valued up to 2 billion euros.
Both Cummins and MHI actively compete with MAN in the marine engines market as well. The gas turbines, turbochargers and compressors of MAN would be unique additions to the product portfolio of Cummins and Mitsubishi. While the turbomachinery products of MAN will be a completely new addition to Cummins, for Mitsubishi, MAN would help to ascend to the leading position that MAN has in the marine engines industry, next only to Wartsila. Jenbacher, though, has a narrower product base and MAN would be a bigger brother after merger if that deal goes through. Final offers are expected by end of February.
The marine engines industry has been goaded towards uncharted waters
The divestment is part of Volkswagen’s efforts to slim down and simplify the group which has 12 brands, trucks, buses, motorbikes, cars and electric bicycles as product offerings.
Reuters reports that MAN Energy Solutions’ EBITDA was 133 million euros in 2018 and will grow to 200 euros this year.
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