Economy

Royal Enfield (Eicher Motors) Makes A Binding Bid To Buy Ducati

Royal Enfield (Eicher Motors) Makes A Binding Bid To Buy Ducati”

Now, the Economic Times is reporting that Royal Enfield, amongst the world's most profitable two-wheeler manufacturers is preparing a US$1.8 billion (That's approximately Rs 12,000 crores) bid for Ducati.

If successful, the move will power Eicher Motors' portfolio, brand equity, global reach and access to technology, multiple sources aware of the development told ET.

Led by Siddhartha Lal, Eicher Motors is said to be the only Asian bidder remaining in contention to acquire Ducati.

As per ET Auto, Eicher is now finalizing and structuring its terms with global banks and consulting companies ahead of the end of the month bid deadline. The Volkswagen Group has been on the lookout since April 2017 for a suitable company to purchase Ducati, which is owned by Volkswagen's subsidiary Audi.

The brand is looking to be sold around €1.5 billion, the report added. This would value it at 14-15 times its EBITDA of about €100 million. Barring TVS Motors and Tata Motors, all the other auto stocks in the index were trading in positive terrain.

Royal Enfield (Eicher Motors) Makes A Binding Bid To Buy Ducati

Though the company has made a decision 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.

The VW Group will have a board meeting on September 29, 2017, to decide if Ducati will actually be on sale.

There have been a few setbacks for the VW Group in selling Ducati.

Eicher is now 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.



Like this

Latest


07 September 2017
Florida preparing for Category 5 Hurricane Irma
The company is donating $1 of every ticket booked on Wednesday, Sept. 6 to the American Red Cross for hurricane relief efforts. Sixty percent of the residents on the island are homeless, he revealed. "If your cars battery has been dead better fix it".

07 September 2017
The ASOS plc (ASC) Given "Underperform" Rating at Credit Suisse Group
The stock of 4imprint Group plc (LON:FOUR) has "Buy" rating given on Friday, March 10 by Liberum Capital. The stock of Petra Diamonds Limited (LON:PDL) has "Buy" rating given on Friday, October 30 by Investec.

07 September 2017
Stocks Down On North Korea Fears; Oil Up On Capacity Outlook
Separately, U.K. construction activity growth eased to a one year low in August, survey data from IHS Markit showed. ENERGIZED: Gains in crude prices helped lift shares in oil producers and other energy industry companies.

07 September 2017
Putin warns of 'global catastrophe' in N Korea impasse
In comments carried by Russian news agencies, Putin said Trump is "not my bride , and I'm not his groom". Moon's trip to Russian Federation follows North Korea's latest and sixth nuclear test staged Sunday.

07 September 2017
Bloomin' Brands, Inc. (BLMN) Given Consensus Recommendation of "Hold" by Brokerages
Bloomin' Brands had a return on equity of 74.68% and a net margin of 2.29%. 31 funds opened positions while 71 raised stakes. Over the last three months, the shares of the company have changed -16.64% and performed -0.58% over the last six months.

07 September 2017
Local colleges close down for Hurricane Irma
They note that the safety of students, faculty and staff is the top priority at Armstrong. UCF and the American Athletic Conference will announce TV coverage plans at a later time.

07 September 2017
NY to file lawsuit to protect DACA recipients
What happens in six months? President Trump even Tweeted on Tuesday that he would revisit the issue if Congress can not act. And the voters are right: Our immigration laws and enforcement need to be fixed.

07 September 2017
Pakistani envoys moot: Asif seeks suggestions on how to deal with US
President Donald Trump had accused Pakistan of sheltering militants and stated that "we can no longer be silent about Pakistan's safe havens for terrorist organizations".

07 September 2017
EAM Sushma Swaraj meets Russia Deputy Prime Minister Yury Trutnev
According to a tweet by the Indian Embassy in Russia, Sushma Swaraj also said that there was no way this friendship could get weak.

07 September 2017
Now is not time to talk to N
Labor leader Bill Shorten and Shadow Foreign Affairs Minister Penny Wong have announced they will travel to South Korea and Japan. The leaders also discussed terrorism in the southern Philippines.



Recommended