On Thursday, Bajaj Auto announced that it will acquire a stake of ₹7,765 crore in Austrian motorcycle manufacturer KTM AG from its completely owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV). This deal will be a remarkable achievement for Bajaj Auto, transforming it from a minority stakeholder to a majority owner.
Additionally, this deal will provide financial aid to KTM as it navigates financial difficulties, supporting operational continuity and debt resolution. It will also strengthen Bajaj’s position in the global motorcycle market. BAIHBV total investment €800 million (around ₹7,765 crore), which includes (₹4,365 crore) as a fixed-term loan to KTM AG, a convertible bond in Pierer Bajaj AG ( ₹1,455 crore ), and previously charged as a shareholder debt (₹1,945 crore).
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Bajaj Auto decided to take control of PBAG, the parent company of Pierer Mobility AG, which owns KTM AG. This is liable to regulatory approval in Austria . Recently, Bajaj Auto held a 37.5% stake in KTM indirectly through PBAG and Pierer Mobility. This acquisition will benefit both companies, and they will work together in a joint program based in India.
