Team-BHP - Ducati on the block! EDIT : Audi buys Ducati for USD 1.12 Billion

Investindustrial, the Italian private equity group that owns Ducati, is looking to dispose of the motorbike brand in a deal worth up to €1bn. As per the groups chairman a handful of industrial groups in Asia, Europe and the US were interested in Ducati and people close to the situation said possible buyers include Mahindra and the Germans BMW & VW.

Ducati sells about 40,000 motorcycles per year and claims a market share of almost 9 per cent in the global 'sports motorcycle market' but also has debts of 1.7 times its gross earnings!!! Mahindra's faltering 2 wheeler operations need a kickstart again and Ducati fits the bill albeit a very expensive and risky one at that.

I remember Bajaj showing major interest in Ducati before backing out due to the asking price and debt overheads. They already own a big chunk of KTM but the majority holders Cross industries are fiercely guarding their stake. Pretty sure that Bajaj is impatient to be the dominant player in a patnership and an outright purchase of Ducati gives them just that!!

No doubts that there are plenty of suitors for a brand like Ducati, but imagine it being taken over by an Indian company. '...and Valentino Rossi crosses the finish line first on his Mahindra Ducati..yaayy' :D

source: Buy-out group eyes Ducati disposal - FT.com

It is about stake sale and not entire sale of ducati. Mahindra is bidding for a stake in Ducati. I believe its about 10% stake. If Mahindra buys then we may see Ducati bikes coming in as CKD units and hence good pricing of bikes cum spares can be expected along with spare availability.

Mods: Please change the thread title to "Mahindra may buy stake in Ducati". Current title talks about mahindra buying entire ducati.

@ dajay99,

Please read the first para of the Financial Times report, link given in first post:

'Ducati is set to change hands this year after its private equity owner said it aimed to make three times its initial investment by selling or listing the producer of top-end Italian motorcycles.'

I don't know if it makes sense for Mahindra to buy into a iconic brand like Ducati when its own two wheeler operations are faltering. It just doesn't have the know how. You shouldn't buy a brand like ducati just cause you want the know how! Ducati won't help Mahindra sell more motorcycles cause look at the segment it sells in and its numbers. Its not the technology that Mahindra can bring into their domestic bikes...its just too far off as a gamle.
The synergy needs to come in like the Tata's acquisition of JLR. They are established players who learned the basics of car markets the hard way. But for them to get into the next level of luxury/premium car market where margins are high, they needed to buy something ready. And look how well it has worked!
Same for Bajaj...even if it gets just a stake in KTM, its really gone ahead and churned out bikes that are a new segment even for KTM. And then it goes ahead and churns out a brand new pulsar...thats how it works!
You don't just go and buy a Ducati cause you want to get into 2wheeler market. You want to cause you want to get "deeper" into it. Not sure if its wise...am quite surprised to read this news. Ssyangyong & SaaB make sense to me but Ducati? :D

I seriously doubt Mahindra's management and marketing ability to lead a worldwide brand like Ducati, if they do pull it off, which i wish them and hope they do, it will be short of a miracle.

Tata on the other hand has a lot of global expertise thanks to their involvement with Fiat & Ferrari (the engine management codes & vehicle computing is done courtesy the Tata Group).

In all possibilities Mahindra taking over Ducati would be like the blind leading the able.

Audi to buy Ducati – the four rings expands from four wheels ?

Audi has struck an exclusive deal giving it first rights to buy Italian superbike manufacturer Ducati, CAR can reveal.

The exclusivity deal gives Audi until mid April when the deal will likely be finalised, according to high-ranking sources contacted by CAR.
Ducati's liabilities are around €200 million [earlier report said €800 million, this has been corrected], and our sources suggest the total purchase price is about €250m-€300m.
This is a bold move by Audi, which sees the long-term advantage in moving into two wheels as well as four.

Audi to buy Ducati

Indian biggies like Mahindra and Hero MotoCorp apart from BMW and Audi have lined up to buy Ducati from its current owner Investindustrial which is looking to sell the superbike company to a more stable automobile house.

Full news at :

Ducati on the block! Mahindra, Hero, BMW and Audi go for the kill - Rediff Getahead

AGNELLI family heir Lapo Elkann has said he would consider making an offer to buy Ducati to keep the firm in Italian hands – but only if the price comes down.

Speaking to fashion magazine Panorama Icon, the 34-year-old Fiat marketing director (who's also in charge of Ferrari's 'tailor made' service, aimed at those rich enough to find a normal Ferrari a bit common) said: “I consider myself a patriot and I would not like Ducati to be sold abroad and end up in bad hands.”

However, he also suggests that the current owners, InvestIndustrial, are asking too much (they put Ducati's value at around one billion Euros), saying: “The management's price demand was exorbitant. What would I do if they lowered their demand? Well in that case I could really think of coming forward with an offer.”

Elkann counts Valentino Rossi among his friends and is seen as having been key to Fiat's sponsorship of Yamaha's MotoGP effort when Rossi rode for the Japanese firm. Although often voted into various best-dressed lists, Elkann's tastes aren't subtle – he drives a Ferrari 458 Italia finished in a camouflaged paint scheme, with camo leather interior and even the same finish on the engine. Funnily enough, it doesn't blend in. Presumably he'll be a fan of the newly-announced matte-green Ducati Monster Diesel limited edition...

Source: Fiat heir considering Ducati bid - Motorcycle news: Industry - Visordown

Seems like Audi has snapped up Ducati, only pending an announcement. Its rumoured to be announced on April 18 before the annual VW annual shareholders meet.

Theres no stopping Ferdinand Piech if he wants something and at the present moment companies like Hero or Mahindra arent obstacles for the German automotive behemoth.

source:Audi may announce Ducati buy next week: sources | Reuters