Volkswagen has selected three suitors for the next round of bidding for its heavy diesel engine division Everllence, Bloomberg News reported on Wednesday, citing people familiar with the matter.
CVC Capital Partners, Bain Capital and a consortium involving buyout firm EQT AB and Porsche have been invited to the next round, the report said.
Volkswagen will make the sale of a majority stake in Everllence contingent on Porsche becoming a co-investor of about 10 per cent in the maker of large marine engines, Reuters had reported exclusively last month.
Porsche, controlled by the Piech and Porsche families, is Volkswagen Group's top investor.
Reuters could not immediately verify the report. Volkswagen, Porsche and Bain Capital declined to comment. CVC Capital and EQT did not immediately respond to Reuters requests for comment.
A move to divest Everllence, the rebranded former MAN Energy Solutions, could allow the German carmaker to focus more on its core automotive business as it navigates steep tariffs, stiff competition from China and a costly pivot to electric vehicles.
Reuters has previously reported that Volkswagen has received bids valuing Everllence at around €8 billion ($9.38 billion) including debt, and that a deal is expected by summer.
(Reporting by Rhea Rose Abraham in Bengaluru; Editing by Tasim Zahid and Sahal Muhammed)