Eicher Motors closes in on Ducati; to make a binding bid of $1.8bn

Editor@Throttle|Updated: September 7, 2017 9:23

After taking Royal Enfield and its cult Bullet motorbikes to top gear of machismo appeal and global profitability, Siddhartha Lal led Eicher Motors is revving up to make a binding offer to acquire the iconic Italian superbikes Ducati for $1.8 billion-$2 billion -- a move, if successful, will further power its portfolio, brand equity, global reach and access to technology, said multiple sources aware. 

Eicher, believed to be the only Asian left in the fray in the ongoing auction for the Ducati disposal, is currently finalising financing and structuring terms with a clutch of global banks and consulting companies ahead of the deadline, that was scheduled for this month end, added the sources mentioned above. 

In 2016, while Ducati sold 55,000 units worldwide Royal Enfield sold 6.5 lakh units in FY-17 and is racing towards 1 million units in the next couple of years, despite macro-economic challenges like the transition to BS IV or GST. Eicher Motors has been looking at expanding its global footprint especially in the Americas after making inroads in parts of Europe and Australia. 

Article Source : EconomicTimes