Volkswagen AG agreed to sell a 51% stake in its marine engine subsidiary, Everllence SE, to Bain Capital.
The private equity firm will pay approximately €7.4 billion ($8.4 billion) for the majority interest.
Volkswagen will retain a 49% stake in the business, formerly known as MAN Energy Solutions.
The sale aims to streamline Volkswagen's portfolio and fund its transition to electric vehicles.
Proceeds from the transaction will strengthen the automaker's financial foundation amid rising market competition.
The agreement guarantees employment protections for German sites until the end of 2030.
The deal is expected to close by the end of 2026, pending regulatory approvals.