Bajaj Auto To Take Full Control Of KTM

Bajaj Auto has announced that the company has secured a regulatory clearance from the Austrian Takeover Commission to acquire full control in Pierer Mobility AG (PMAG), the parent company of KTM AG. This means that KTM’s future will now officially be handled by Bajaj Auto. The ruling by the Austrian commission allows Bajaj Auto’s Netherlands-based subsidiary Bajaj Auto International Holdings BV (BAIHBV) to assume control without any obligation to make a mandatory takeover bid to other shareholders, Bajaj Auto said in a regulatory filing at the Bombay Stock Exchange.

Also Read: KTM Very Important For Bajaj Auto, Says Rajiv Bajaj

Bajaj Auto looks set to fully acquire KTM

Through Bajaj Auto International Holdings BV, Bajaj already holds 49.4 per cent stake in Pierer Bajaj AG (PBAG), the joint holding company that controls Pierer Mobility AG. Under the latest approval, granted under a “restructuring privilege” Bajaj Auto International Holdings BV can acquire the remaining stake held by Pierer Industrie AG in Pierer Bajaj AG. Bajaj now intends to acquire all 50,100 shares held by PIAG, and to take sole control of PBAG, and in turn, PMAG and KTM AG.

Also Read: Bajaj Auto Set To Acquire Majority Stake In KTM

KTM and Bajaj Auto's partnership dates back to 2007 when Bajaj took an initial minority stake in KTM

The latest approval comes after Bajaj rescued KTM from insolvency after investing 800 million Euros earlier this year, which included 450 million Euros as secured term loans, 150 million Euros via convertible bonds, and an additional 200 million Euro package, helping KTM settle 30 per cent of creditor claims by May 2025, restart production, and exit court-supervised restructuring by the middle of the year.

The Austrian regulatory body has imposed a few conditions under which Bajaj Auto must notify the commission of the fulfilment of the takeover conditions, publish the change of control and disclose details of any related-party transactions by the end of 2026. What is not clear at this stage is whether Bajaj will go ahead and take full control of KTM AG, or just take control in the interim so that KTM's restructuring can begin and the brand is back up on its feet. It will be interesting to see how the next phase of this brand partnerships shapes up.