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Bajaj's KTM Takeover Gets Official Clearance From Austrian Takeover Commission
Indian-two-wheeler manufacturer Bajaj has received clearance from the Austrian Takeover Commission to assume control of PMAG, the parent company of KTM AG. The approval falls under a restructuring privilege exemption that allows Bajaj to gain control without a mandatory public takeover offer.
Bajaj currently holds a 49.9 per cent stake in Pierer Bajaj AG, a joint venture that owns KTM AG. The remaining 50.1 per cent is held by Pierer Industrie AG. Following the approval, Bajaj's European subsidiary will acquire this stake, giving it majority ownership of the Austrian motorcycle brand.
KTM has faced financial challenges in recent quarters, prompting Bajaj to step in with financial assistance amounting to around €800 million. The package included loans, convertible bonds, and equity funding to help stabilise operations and cover KTM's pending creditor obligations.
The Austrian regulator's approval comes with several conditions, including mandatory notifications on the change of control and full disclosure of related-party transactions involving Pierer Industrie through 2026. The regulator also requires adherence to transparency norms to safeguard minority shareholder interests.
Bajaj's partnership with KTM dates back to 2007, when the Indian manufacturer first acquired a minority stake in the company. Over the years, the collaboration expanded into shared product development, with several KTM and Husqvarna models produced at Bajaj's Chakan plant for domestic and export markets.
The new structure places operational control of KTM and its associated brands under Bajaj's authority. The company will oversee future product planning and manufacturing strategies for the European brand, which continues to operate from its headquarters in Mattighofen, Austria.
The takeover includes KTM's global subsidiaries and its associated manufacturing and distribution network. Bajaj will integrate financial and management oversight while maintaining KTM's existing operational identity and European management structure.
The restructuring privilege was granted because the takeover forms part of a larger stabilisation effort for KTM's operations, ensuring business continuity and compliance with financial obligations after recent restructuring measures.
The approval of its KTM takeover completes a key regulatory process in Europe, enabling Bajaj to consolidate its global motorcycle business through direct control of KTM AG and its affiliated entities under the PMAG structure.
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