INNIO, Mitsubishi Heavy Industries and Cummins in the running for the engine maker.
Volkswagen has received bids from INNIO, Mitsubishi Heavy Industries and Cummins for its MAN Energy Solutions business, according to a Reuters report.
Formerly known as MAN Diesel & Turbo, MAN Energy makes large two- and four-stroke diesel and gas engines for marine, oil & gas and power generation applications, generator sets and complete marine propulsion systems, as well as turbochargers primarily for the oil & gas industry. It had 2018 earnings of approximately €3.1 billion.
According to the Reuters report, MAN could draw offers between €1.5 to €2.2 billion. Final bids are expected to be submitted by the end of February and VW has offered to maintain a significant minority share of the business.
Neither VW nor the reported bidders would comment publicly on the report.
The acquisition of MAN would be an interesting addition for each of the reported contenders. It would give INNIO, which owns and operates the Jenbacher and Waukesha gas engine products, large diesels and enable the company to expand beyond the power generation and gas compression industries.
Cummins manufactures large high-speed engines and the deal would give it even larger slow-speed engines and could add a new larger end for its Cummins Turbo Technologies turbocharger subsidiary.
And an acquisition by MHI could augment MHI’s existing businesses, as it also builds high-, medium- and slow-speed engines and turbochargers.