KTM close to forming alliance with Ducati, says Rajiv Bajaj – Report

Many companies are reportedly willing to acquire the Italian performance motorcycle brand, including Edizione Holding, Bain Capital, Harley Davidson, Eicher Motors and Bajaj Auto. A new report from The Economic Times says that KTM is close to finalising a deal on acquiring Ducati. Bajaj Auto has invested a total of €198.1 million and holds 47.99% stake in KTM.

At the 10th annual general meeting, Rajiv Bajaj, MD, Bajaj Auto, said: “We are very close to finalising a very promising alliance, it’s not certain, that it will happen, but if it happens, it will open up enormous possibilities for the company.”

Ducati is a part of the Audi AG’s Premium3 brands which consists of Audi, of course, as well as Lamborghini. The Bologna-based motorcycle maker joined the Audi family in July 2012. The company sold 55,451 vehicles last year, 1.2% (642 units) more than in 2016. However, at the end of FY2016, the operating profit reduced from €54 million in 2015 to €51 million.

In Europe, the Benetton family-owned Edizione Holding is also bidding for Ducati, as per a report from Reuters. The company has valued the high-performance motorcycle brand at US$1.2 billion. Andrea Bonomi, the Italian investor who sold the brand in 2012, is also serious about buying back the brand. Back to the Bajaj Auto-KTM alliance, The Economic Times says that the announcement is likely to be made in the next two weeks, suggesting that the Indo-Austrian JV is really close to sealing the deal.