FountainVest Deal Collapses for EuroGroup Laminations Amid Indian Regulatory Hurdles

Italian electric motor component manufacturer EuroGroup Laminations (EGLA) saw a major deal fall through on Monday as Chinese private equity firm FountainVest failed to secure regulatory approval in India, scuttling a planned acquisition of a 45.7% stake from EMS Euro Management Services.

The deal, initially agreed upon last year, involved FountainVest acquiring EMS’s stake in EGLA with the intention of launching a buyout offer to delist the Italian firm. Still, compliance discussions with Indian authorities proved unsuccessful, leading to the joint decision by EMS and FountainVest-owned investment vehicle Ferrum to terminate the agreement, according to a statement.

EGLA’s shares were expected to fall around 50% following the news, and trading was initially halted at market open.

India Link Through Kumar Precision Stampings

The regulatory roadblock in India stems from EGLA’s 40% stake in Kumar Precision Stampings, a company it invested in during 2024, as noted by analysts from brokerage Equita. As part of negotiations, FountainVest and EMS had proposed carving out EGLA’s Indian subsidiary, but this solution was not accepted by Indian authorities. IPFO Online reported on the initial acquisition of the stake in Kumar Precision Stampings in August 2024.

Italian Government Approval with Conditions

Italy had already given its approval for the transaction, imposing unspecified conditions under its “golden power” rules designed to protect strategic assets, Reuters reported in January.

EGLA Maintains Outlook

Despite the deal’s collapse, EGLA stated in a press release that its industrial and financial outlook remains unaffected. The company reported €869 million in Group Revenue and €116 million in Group EBITDA Adj. For 2024, and boasts a €5.2 billion E-Mobility order book for 2025-2030 (as of May 2025).

EGLA’s Board of Directors is scheduled to meet on March 23, 2026, to approve the Group’s Annual Financial Report, and again on May 18, 2026, to approve the Separate Financial Statements for the financial year ending December 31, 2025. Further financial events are scheduled throughout the year.