BOSTON: Bain Capital has agreed to buy a controlling stake in Volkswagen AG’s heavy diesel engine unit, ending one of Europe’s most hotly contested private equity auctions. 

The buyout firm has entered into an exclusive agreement for a 51% stake in Everllence, according to a statement from Volkswagen, which said the deal strengthens its financial position and will generate proceeds of about €7.4bil (US$8.4bil) for the automaker.