The India operations involve EGLA’s 40 percent stake in Kumar Precision Stampings, bought in 2024, analysts at brokerage Equita said in a note | Illustration: Binay Sinha
EMS Euro Management Services and FountainVest-owned investment vehicle Ferrum said in a joint statement on Monday that compliance discussions with Indian authorities had not been successful and no alternative solution could be found, so they had scrapped the deal.
EGLA’s shares were unable to trade on the open market and are said to have fallen by around 50 percent.
EMS agreed last year to sell its 45.7 percent stake in the electric motorcycle parts supplier to FountainVest in a deal that included a buyout offer aimed at delisting the Italian company. It was subject to regulatory approval in all relevant markets, including India.
The India operations involve EGLA’s 40 percent stake in Kumar Precision Stampings, bought in 2024, analysts at brokerage Equita said in a note.
As part of the compliance discussions, FountainVest and EMS had proposed splitting up EGLA’s Indian subsidiary, they said.
The Italian government had already approved the transaction by imposing unspecified conditions under so-called “golden power” rules aimed at protecting strategic assets, according to a document seen by Reuters in January.
EGLA said in a separate press release that the termination of the deal had no impact on its industrial or financial prospects.
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First publication: February 16, 2026 | 2:35 PM IS
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