Royal Enfield to bid nearly $2bn for Ducati India
The Dollar Business Bureau
The Royal Enfield’s maker in India, Eicher Motors is bidding $1.8 billion-$2 billion for the Italian motorcycle manufacturer Ducati, according to a Reuters India news on Thursday. This led to the shares of Eicher Motors spiraling to a record high.
Eicher Motors is the only Asian company in the auction, finalising the terms with advisers before the bidding deadline at the end of September, the media agency reported.
German carmaker Volkswagen(VW) is also considering options for Ducati, including a sale of the brand, wholly controlled by VW's Audi division. But internal rifts and resistance from the German trade unions, have put the company’s plans on hold. It should be recalled that Reuters had reported earlier that Hero Motor Corp too had set its sights on Ducati.
Reuters reports that “Eicher shares were up 3.4% around 0900 GMT after earlier rising as much as 3.9% on the bid report, as investors bet a deal could boost the Indian brand.”
The stock was among the top percentage gainers in the main index.
Sources had earlier told Reuters that U.S. motorcycle maker Harley-Davidson and India's Bajaj Auto Ltd were among companies preparing bids for Ducati.
In 2016, Ducati sold over 55,000 motorcycles the world over while Royal Enfield sold over 660,000 motorcycles in 2016-17 worldwide and is aiming to touch producing nearly 900,000 motorcycles by the end of 2018.
Ducati motorcycles are known the world over for its high and sophisticated motorcycles boasting an engine capacity between 800-1200cc