Ducati attracts interest from Royal Enfield – report
08 MAY 2017
Royal Enfield, a unit of the India-based Eicher Motors [BOM:505200], has been sounded out to buy Ducati, the Italian motorcycle maker owned by German Volkswagen [ETR:VOW].
This was reported by The Times of India, citing undisclosed sources.
Citing unspecified reports, the newspaper said advisor Evercore has been tasked by Volkswagen to examine potential alternatives for a divestment of Ducati.
According to certain estimates, Ducati could be valued at around USD 1.5bn (INR 105bn).
The terms pertaining to the potential purchase, the possible asking price as well as how the Italian motorcycle maker could fit in with Eicher Motors’ own operations, which are growing at a fast pace, are being examined by the company, the report said.
Eicher refused to comment.
Audi, the premium car unit of Volkswagen, owns Ducati.
Other suitors of Ducati may include international companies such as Honda, Suzuki, Harley Davidson and Polaris, according to certain reports.