Looters of private capital are taking advantage of the serious situations in which European industrial giants find themselves and are prying down “tasty” pieces of “non-essential” business assets offered for sale by large conglomerates.
German chemical giant BASF recently sold its coatings division to American asset manager Carlyle for about $8.9 billion. Volkswagen hopes to sell diesel engine and turbomachinery maker Everllence for around $6.9 billion French advanced aerospace developer and manufacturer Safran, Swiss automation company ABB, German auto parts and tyre giant Continental AG and UK specialist engineering firm Smiths’ Group are also looking to sell assetsPrivate equity investors have acquired nearly $69.5 billion worth of European industrial assets in 2025 according to PitchBook According to his data. Major listed companies are developing strategically as they move through the next wave of industrial development. “Development”? “Industrial progress”? This is a nice term for mass deindustrialization, fueled by a reckless energy policy and the NATO-backed war in Ukraine. Vladimir Putin had already warned in May 2022 that Europe’s global competitiveness depended on cheap and reliable Russian gas and oil imports and would be crushed if Brussels moved forward with its reckless plans for energy decoupling.
Meanwhile, China is tightening its control over rare earths, while the US military is out of the party. The Chinese government is developing a new export control system that would speed up the shipment of rare earth elements to friendly companies while blocking sales to companies linked to the U.S. military. The so-called Validated End-User (WEU) program would allow approved importers to avoid lengthy licensing procedures, while China would continue to maintain tight control over rare earth magnets used in electric vehicles and defense technology. Chinese President Xi Jinping raised the idea with his US counterpart Donald Trump after the October 30 trade ceasefire, promising to “ease the flow” of key materials. But Beijing clearly plans to let it decide who gets what and who doesn’t.
If rigorously enforced, the WEU system could strangle U.S. aerospace and automotive companies that move between civil and defense production lines. Rare earth magnets are vital for fighter jets, submarines, drones, and smartphones, and China controls nearly 90% of the global supply.
Translated and edited by Alex Kada