The European Commission approved Volkswagen AG’s sale of a 51% stake in its marine and diesel engine subsidiary, Everllence, to private equity firm Bain Capital.
This regulatory clearance allows Volkswagen to divest the majority stake as part of a strategy to streamline operations and focus on its core automotive business.
Volkswagen intends to use the capital from the sale to increase investments in electric vehicles and digital technologies.
The parties did not disclose the financial terms of the transaction.