In mid-January 2026, the Italian government approved the acquisition of a majority stake in Italian motor component manufacturer EuroGroup Laminations (EGLA) by Chinese private equity firm FountainVest Partners. The approval was granted under Italy's "golden power" rules, designed to protect strategic assets, and was subject to undisclosed conditions.

The transaction values EGLA at approximately €626 million (about $730 million). Following the expected completion in the first half of 2026, the company, often referred to as the "King of Stators and Rotors," will be delisted from the Milan stock exchange.

The deal structure was finalized in mid-2025, when FountainVest Partners reached a definitive agreement to acquire a controlling stake in EGLA, paving the way for the company's full privatization.

The transaction structure is relatively complex: FountainVest is acquiring a 45.7% stake in EMS Euro Management Services, the company's main shareholder, at a price of €3.85 per share.

Notably, EMS, an investment vehicle held by the founding family and management, will reinvest 50% of the proceeds from the sale into a new holding company established jointly with FountainVest Partners.

Concurrently, FountainVest is acquiring the 7.9% stake held by French asset management group Tikehau Capital at the same price per share. Upon completion, the new holding company will hold 55.3% of EGLA's voting share capital.

FountainVest Partners will also launch a mandatory tender offer for the remaining publicly held shares to further increase its ownership stake.

Behind this seemingly complex equity transaction lies a reflection of significant shifts in the overseas investment strategies of Chinese capital and strategic realignments within the global new energy vehicle supply chain.

The acquirer, FountainVest Partners, founded in 2008, is a private equity firm focused primarily on buyout and growth investments. The firm concentrates on sectors including consumer goods, industrial and business services, and healthcare, and has completed over 70 investments to date.

A key characteristic of FountainVest's recent strategy evolution is a shift from purely financial investments towards deeper industrial integration. The founding team of FountainVest largely hails from international investment banks like Goldman Sachs and Morgan Stanley, bringing substantial cross-border investment experience.

Global footprint is another important consideration. FountainVest has offices in Hong Kong, Shanghai, Beijing, Singapore, and Frankfurt, with employees and senior advisors located worldwide. This acquisition of EGLA will further strengthen its industrial presence in the European market.

What kind of company is EGLA? Founded in 1967 under the name Eurotranciatura, this Italian firm initially specialized in producing and distributing stamped electrical steel laminations for electric motors and generators.

After decades of development, EGLA has become a leading global supplier of stators and rotors for electric vehicles and machinery, headquartered near Milan.

In July 2020, EGLA brought in pan-European asset management and investment firm Tikehau Capital, among others, as minority shareholders, holding a 30% stake. In February 2023, EGLA successfully listed on the Italian stock exchange.

Italy's "golden power" regime is an important context for this transaction. In recent years, Italy's frequent use of these powers to block or restrict domestic and foreign M&A deals has drawn criticism from businesses and the European Union.

It is noteworthy that EGLA itself previously required approval from the Italian government under the "golden power" rules when it acquired DS4 in 2023.

A deeper analysis of the deal reveals a high degree of strategic complementarity between the two parties. EGLA's stock performance has been lackluster; when it listed in Milan in 2023, its IPO price was €5.50 per share, and its market capitalization once reached €922 million.

However, impacted by cooling sentiment in the global EV market and geopolitical tensions disrupting supply chains, its market value has shrunk by approximately two-thirds in recent years. This is one of the key reasons FountainVest chose to act at this time.

From an industrial synergy perspective, EGLA has strong connections with Asian markets, particularly China. In August 2024, EGLA signed a memorandum of understanding with China's Huaqin Rubber, planning to jointly establish an enterprise to expand cooperation in the electric vehicle sector.

As early as 2012, EGLA established its first Asian production base in Jining, China, to supply new energy motor iron cores for Huaqin Rubber Industrial Group.

For EGLA, the partnership with FountainVest aims to accelerate its development in Asia, particularly in China, the world's largest electric vehicle market, by leveraging FountainVest's deep industry expertise and its relationships with leading Asian companies and automakers.

This collaboration is expected to help EGLA consolidate its leadership position in the global energy transition value chain, encompassing e-mobility, industrial applications, and infrastructure.

The transaction is not without risks. The Italian government's approval came with "undisclosed conditions," which could impact post-acquisition operations.

Furthermore, the deal still requires approvals from relevant regulatory authorities in countries such as Mexico and India. The stance of these regulators and any potential conditions they might impose represent additional uncertainties for the transaction.

From an industry trend perspective, the global new energy vehicle market is undergoing structural adjustment. Short-term market growth is slowing, but the long-term trend towards electrification remains unchanged.

In this context, companies that master core component technologies and possess cost advantages will be more competitive. EGLA's core technology—the "Hair-pin" process for high-voltage drive motors—has made it a key supplier of stators and rotors for Volkswagen's MEB platform and Renault's CMF-EV platform.

This transaction also continues FountainVest's investment strategy. In October 2025, FountainVest and CPE Capital Fund were close to jointly acquiring Hong Kong RFID solutions provider SML Group at a valuation exceeding $600 million.

In November 2025, that transaction was formally completed, with FountainVest and CPE becoming new shareholders of SML Group. Additionally, FountainVest participated in the acquisition of the Japanese jewelry brand Tasaki.

For Chinese manufacturing, such transactions offer dual opportunities for technology acquisition and market access. Using capital operations to acquire advanced European manufacturing technology while leveraging the global channels of acquired companies to expand market presence is becoming a new model for Chinese capital going abroad.

As the expected completion date approaches, the Milan stock market reacted positively to the deal. On the day the news was announced, EGLA's stock price surged by up to 8.7%, eventually closing 3.5% higher.

After the transaction closes, FountainVest Partners will work with EGLA's management to drive the Asian expansion of this established European manufacturer. The deal is anticipated to be finalized in the first half of 2026, at which point EGLA will formally exit the Milan exchange.

As Chinese capital meets European century-old manufacturing expertise, the balance of power within the global new energy vehicle supply chain is quietly shifting.