Harley & Bajaj Bidding To Buy Ducati


Ducati was in the news when Audi who owns Ducati, had put up the former for sale. There were speculations that Royal Enfield might be buying Ducati, then came Hero MotoCorp, then Suzuki and then Honda. None of those brands seem to be on the list now.

Nonetheless, Harley’s and Bajaj’s are up to buy Ducati. Both Harley-Davidson and Bajaj Auto are lining up for a takeover bid for buying Ducati.  there are several buyout funds that are also preparing bids for the Monster maker.

Harley-Davidson has hired Goldman Sachs, an American multinational finance company to work on the deal and bids for which are expected to start in July while Volkswagen which owns Audi is working with Evercore (an investment banking company) on the sale which will help it fund a strategic overhaul following its emission scandal.

Volkswagen hopes to raise between 1.4 and 1.5 billion Euros from the sale of Ducati, valuing it at 14 to 15 times its EBITDA (Earning before Interest, Taxes, Depreciation, and Amortisation) of about 100 million Euros, but some of the bidders may struggle to pay as much as 1.5 billion Euros. Hero MotoCorp and TVS Motor too walked away from the deal because of this price.

Whoever buys, be it Harley-Davidson or Bajaj Auto, they, of course, will have access to Ducati’s Italian super technology, but the buying brand should complement with Ducati. There will be technology and innovation transfers happening at both ends, given how our Indian market is growing, this technology transfer from Ducati will take time to give a positive response.


 

Article by Gurpreet Kaur Bawa

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