Eicher Motors-owned two-wheeler maker Royal Enfield has reportedly been approached by Italian superbike manufacturer Ducati for an acquisition. Ducati parent Volkswagen has roped in banking agency Evercore to explore the options for a sale. Estimates peg the valuation of the Italian superbike maker at 1.5 billion euros, according to a report in The Times of India.
The Ducati buyout, if it takes place, can help Royal Enfield stamp its authority in global markets. The company is already working its way become the top bikemaker globally. The Italian company boasts of bikes with engine capacity between 800cc and 1,200cc. Royal Enfield can get a boost through a buyout as it doesn’t have 800-1200cc bikes in its portfolio.
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.
Eicher Motors already has a tie-up with Swedish auto company Volvo for heavy commercial vehicles and American firm Polaris for personal utility vehicles.
Eicher Motors reported a 33.9 percent jump in its consolidated net profit at Rs 459.4 crore against Rs 343.1 crore during the same period last year. The company’s consolidated total income rose 23.3 percent at Rs 2,132.5 crore against Rs 1,729 crore during the corresponding quarter.