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Harley-Davidson Is In The Race To Buy Its Italian Rival
American firm Harley-Davidson is in the race to buy its Italian rival, Ducati.
American motorcycle manufacturer Harley-Davidson is in the race to buy its Italian rival, Ducati. The deal could be worth 1.67 billion dollars.
Milwaukee-based Harley-Davidson has hired Goldman Sachs to sort out the deal. As per source, the bids are expected to begin in July 2017. Volkswagen is working with investment firm Evercore on the sale of Ducati.
Volkswagen plans to fund the money for its new strategy following the diesel emission scandal. Apart from that private equity funds KKR, Bain Capital and Permira are all working on the deal to purchase the Italian firm.
Evercore has sent out the information packages to all potential buyers including Ducati’s previous owner Investindustrial. Indian two-wheeler maker Bajaj Auto is also looking to buy the Italian marquee.
Volkswagen expects to gain around 1.4 to 1.5 billion euros from the sale of Ducati. Several sources revealed that it might have to compromise on price as several bidders will be unable to pay that price.
Hero MotoCorp and TVS Motor Company were also interested in the deal but stepped out of it after seeing the price tag. BMW, Honda and Suzuki have also decided to stay away from bidding.
DriveSpark Thinks!
Harley-Davidson and Ducati are fierce rivals in the global market. It will be interesting to see what happens when both the firm come together. But several other companies are also in the race to buy Ducati.
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