Either Motors bets big to buy Ducati; Offers ₹11,500 Crores

Must Read

Sanju Samson to replace Shikhar Dhawan in T20 series against WI

Sanju Samson will replace injured Indian opener Shikhar Dhawan in the T20s series against West Indies starting from next...

Supreme Court lashes out on Centre & Delhi govts for Rising Pollution

The Apex Court of the Country, the Supreme Court on Monday lashed the Central and State Government for their...

Harbhajan Singh wishes BCCI Prez Sourav Ganguly to change Selection Panel

The Indian off-spinner Harbhajan Singh on Monday urged Sourav Ganguly, President of BCCI (The Board of Control for Cricket...
Kunwar Prithvi Singh Chauhan
Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.

Eicher Motors, homegrown automobile brand which successfully acquired Royal Enfield to turn it into a global profitable brand, has lined up to make another huge acquisition in the bike segment. This time around, Eicher Motors has offered approx ₹11,500 Crores ($1.8 Billion) to buy Ducati, the Italian brand of sports bikes.

Led by Siddhartha Lal, Eicher Motors is said to be the only Asian bidder remaining in contention to acquire Ducati. If the said move turns into Eicher’s favour, it will further strengthen itself in its offerings, including portfolio and brand value. According to sources, the company is in talks with a number of global banks and structuring firms to present its final offer before the deadline ends. The deadline for Ducati’s auction is said to be this month’s end.

Ducati is owned by Germany based Volkswagon group’s Audi division. Since April this year, the company is said to be in talks with Evercore Investment Bank to sell the brand for around ₹11,450 Crores (€1.5 billion). The mentioned valuation is approx 15 times higher than its EBITDA (Earnings before interest, taxes, depreciation and amortisation) of €100 Million (₹760 Crores). According to sources, the raised funds after selling Ducati will help its parent company to invest in R&D, following the ongoing emission episode.

Along with Eicher Motors, other players who are said to be in contention to acquire Ducati include Harley Davidson, Suzuki, Bajaj Auto and Hero Moto Corp. Along with these automobiles, a couple of private equity funds including KKR and CVC capital partners are also eyeing to acquire the brand.

Though the company has decided to sell off its wing, it has started to face a lot of resistance from inside. VW’s German trade union has opposed this process of selling Ducati, regardless of the price. Also, labour leaders within the group, who hold half the board seats have asked VW group to stop the bidding process and to ask the bidders to stop finalising their offers. The leaders feel that Ducati’s business is in alignment to the global appeal of VW group and selling the same will not be a wise decision for the group in a long run.

On the other hand, Eicher Motors could be the biggest beneficiary of the deal, if it turns towards the Indian company. Since acquiring Royal Enfield, Eicher Motors has turned its fortunes and made it a globally profitable brand. It is looking to dominate the mid-range motorbike segment and trying to penetrate into America after registering its presence in Australia and parts of Europe.

Eicher is currently a notable name in 350-500cc segment and with the acquisition of Ducati, it will also register itself as an influential brand in the 800-1200cc bike segment.

- Advertisement -

Latest News

SBI cuts one-year MCLR by 10 base points, home loans to get cheaper

After this cut, SBI's one-year MCLR comes down to 7.90% per annum from 8.00% per annum

A week after announcing all-in-one plans, Reliance Jio re-launches Rs 98 & Rs 149 prepaid plans

These two popular plans were pulled out by the company last week and a new all-in-one plan with hiked mobile tariffs and limited IUC minutes was announced.

‘Wonder Woman 1984’ trailer: Gal Gadot is back as the Amazonian princess

The official trailer of one of the most anticipated film, Wonder Woman 1984, dropped today which has several amazing action and fight sequences featuring...

Dhoni to produce show on personal lives of military officers

The popular Indian cricketer and former captain of Indian men’s national cricket team Mahendra Singh Dhoni is all set to produce a television show,...

Madhuri Dixit to make her Netflix debut in a Karan Johar production

After working on the big screen for several years, actor Madhuri Dixit is all set to make her debut in the digital world. And...
- Advertisement -

More Articles Like This