FountainVest Cancels EuroGroup Laminations Deal Amid India Regulatory Hurdles

Milan, Italy – February 16, 2026 – Chinese private equity firm FountainVest has called off its agreement to acquire a major stake in EuroGroup Laminations (EGLA) from Euro Management Services (EMS) after failing to secure regulatory approval from Indian authorities. The collapse of the deal sent EuroGroup Laminations’ share price plummeting nearly 59% today.

Deal Details and Background

In July 2025, FountainVest had agreed to purchase 45.7% of EuroGroup Laminations from EMS, with plans to launch a mandatory takeover bid to delist the Italian firm at a price of €3.85 per share. Reuters reports that the transaction was contingent upon receiving regulatory clearances in all relevant markets, including India.

The India Hurdle

The primary obstacle proved to be obtaining Foreign Direct Investment (FDI) approval from India. Il Sole 24 Ore details that compliance discussions with Indian authorities were unsuccessful, and no alternative solution could be found. The issue stems from EuroGroup Laminations’ 40% stake in Kumar Precision Stampings, a company based in India, acquired in 2024. VCCircle confirms this detail.

Share Price Reaction and Market Impact

The news of the deal’s termination triggered a significant sell-off of EuroGroup Laminations shares. Trading was initially suspended, but when it resumed, the stock price fell by 58.9% to close at €1.46 per share. Il Sole 24 Ore reported an initial expected fall of 50%, but the actual decline exceeded expectations.

Regulatory Scrutiny and Previous Approvals

Italy had previously cleared the transaction under its “golden power” rules, designed to protect strategic assets, but with unspecified conditions. VCCircle referenced a Reuters report indicating this prior Italian approval in January.

Impact on EuroGroup Laminations

EuroGroup Laminations stated that the termination of the deal would not affect its industrial or financial outlook. VCCircle reported this statement from the company.

Key Takeaways

• FountainVest’s acquisition of EuroGroup Laminations has been cancelled due to a lack of Indian regulatory approval.
• The primary issue revolves around EuroGroup Laminations’ investment in Kumar Precision Stampings in India.
• EuroGroup Laminations’ share price experienced a substantial decline following the announcement.
• Italy had previously approved the deal with conditions under its “golden power” rules.