Chinese private equity firm FountainVest has called off a deal to buy a major stake in EuroGroup Laminations from the Italian electric motor component maker’s main shareholder EMS after they failed to obtain a regulatory approval in India.
EMS Euro Management Services and FountainVest-owned investment vehicle Ferrum said in a joint statement on Monday that compliance discussions with Indian authorities had been unsuccessful and an alternative solution could not be found, so they had scrapped the deal.
EMS last year agreed to sell its 45.7% stake in EuroGroup Laminations to FountainVest through Ferrum Investment, in a deal that envisaged a buyout offer aimed at delisting the Italian firm.
EuroGroup Laminations said in a separate press release that the deal termination did not affect its industrial or financial outlook.
Reuters
