Is Royal Enfield Planning To Buy Iconic Italian Maker Ducati?

Is Royal Enfield Planning To Buy Iconic Italian Maker Ducati?

While the report stated that Royal Enfield is looking at the terms pertaining to Ducati buyout and exploring options for synergies, Eicher Motors Managing Director Siddharth Lal decline to comment on the potential acquisition. But that's just one of the many possibilities to emerge from the collaboration.

Ducati now produces motorcycles in six models, such as Superbike, Diavel, Hypermotrad, Monster, Multistrada, and Street Fighter and sells over 40,000 across the globe, with the U.S. being its main market. However, all of this is only expected to happen over a couple of years, if at all the purchase goes through. RE is the longest running motorcycle manufacturer in the world starting out in England in 1893. And it could soon be owned by an Indian company.

The Wolfsburg-headquartered Volkswagen group is considering the sale of Ducati as part of an overhaul of its global operations following the diesel emissions scandal that hit its business in September 2015. In the 2016-2017 year, it made a growth of over 30% by selling over 6.6 lakh motorcycles last year. In 2016-17 Royal Enfield sold over 6.6 lakh motorcycles, a growth of almost 32 per cent over the previous year.

More news: North Korea accuses US, South Korea of assassination attempt

By 1935, the Ducati family had built its first factory and made the first Ducati 60cc motorcycle in 1950. Driven by passion, much like any small motorcycle maker with limited funds, Ducati too struggled with achieving greatness over profitability. Between 1967-1978, the bike maker was run by the Government EFIM management, headed Giuseppe Montano - the man that brought famous designer Fabio Taglioni to the company. The Ducati 851, 888 and 916 were built in this era, which was followed by the brand's racing success.

Based on the reports of VolksWagen, they recruited a banking boutique Evercore for sale of its child company Ducati which Audi acquired by paying a massive 860 million euros in 2012.

In 2005, Investindustrial Holdings, private equity firm BS Investimenti and Hospital of Ontario Pension Plan acquired Ducati from Texas Pacific Group.

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