Finance
Chinese firm FountainVest gets Italy's nod to buy stake in EuroGroup Laminations
Published by Global Banking & Finance Review®
Posted on January 14, 2026
2 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 14, 2026
2 min readLast updated: January 19, 2026
FountainVest has obtained Italian government approval to acquire a major stake in EuroGroup Laminations, planning to privatize the company by 2026.
By Giuseppe Fonte and Valentina Za
ROME, Jan 14 (Reuters) - Chinese private equity firm FountainVest has secured the Italian government's approval to buy a major stake in EuroGroup Laminations, a document seen by Reuters showed, under a plan to take the electric motor component maker private.
Shares in EuroGroup Laminations rose as much as 8.7% following the Reuters report, before paring some gains.
The Italian government cleared the deal on December 29 by imposing some unspecified conditions under so-called golden power rules aimed at shielding strategic assets, stated the document, which was sent to parliament.
FOUNTAINVEST TO TAKE EUROGROUP PRIVATE IN MID-2026
Founded in 1967 near Milan, EuroGroup Laminations is a leading global supplier of stators and rotors for electric vehicles.
It first attracted private equity interest in 2020 when France's Tikehau Capital bought a 30% stake through its energy transition fund.
EuroGroup listed in 2023 in Milan, raising 250 million euros in fresh capital at 5.50 euros a share. Its initial market value of around 922 million euros has since plunged by roughly two-thirds.
Italy has made extensive use of its golden powers to block or set conditions on domestic and foreign takeovers, triggering criticism from companies and European Union authorities, which have warned against excessive interference in business matters.
EMS Euro Management Services last year agreed to sell its 45.7% stake in EuroGroup Laminations to an investment vehicle owned by FountainVest for 3.85 euros ($4.48) per share.
Established in 2008, FountainVest has offices in Shanghai, Hong Kong, Beijing, Singapore, Frankfurt, with senior advisers and staff based in Europe, Asia and North America.
Under the transaction, which envisages a buyout offer aimed at delisting EuroGroup Laminations, EMS Euro Management Services would reinvest 50% of the proceeds from the sale into a new holding company set up with FountainVest to own the target firm.
At the closure of the deal, expected in the first half of 2026, the new holding would own 55.3% of the voting share capital in EuroGroup Laminations.
($1 = 0.8589 euros)
(Reporting by Giuseppe Fonte and Valentina Za; Editing by Gianluca Semeraro, Sharon Singleton and Joe Bavier)
Private equity refers to investment funds that buy and restructure companies not listed on public exchanges, aiming for long-term growth and profitability.
Strategic assets are resources or properties that are crucial for a company's competitive advantage and long-term success.
A majority stake is ownership of more than 50% of a company's shares, giving the holder significant control over company decisions.
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