Bajaj Auto Becomes Majority Stakeholder in KTM, Acquisition Complete

Bajaj Auto has completely acquired KTM by infusing €800-million (Around Rs 7,765 Crore) in the deal which closed on Nov 18

Bajaj Auto Ltd, the Pune-based Indian two-wheeler brand, has finally finished the acquisition of majority share in the Austrian company KTM. The brand has received all necessary regulatory approvals from the European authorities in the €800-million (Around Rs 7,765 Crore) deal. Following the total acquisition of KTM, Bajaj has made a few changes in the names of the holding entities. Henceforth, Bajaj Auto becomes the controlling and decision-making authority in KTM from its earlier position of minority shareholder.

As per the latest regulatory filing, Pierer Bajaj AG (PBAG) will now be called Bajaj Auto International Holdings AG. In addition, the PIERER Mobility AG (PMAG), the former parent company of KTM, has been renamed as Bajaj Mobility AG. For the unversed, the PIERER Mobility AG is listed on six stock exchanges in Zurich (Switzerland) and Vienna Stock Exchange in Austria.

It was learnt that Bajaj had received 8 out of 9 regulatory clearances earlier this month. The final approval was received on Nov 10 from the European Commission and the deal was finally closed on Nov 18. This acquisition is no small feat for Bajaj as KTM has a well established network of premium motorcycles in the various European countries.

Before the acquisition, Bajaj Auto had 49.9 percent stake in Pierer Bajaj AG while the remaining shares were owned by entrepreneur Stefan Pierer under the banner of Pierer Industrie AG. Now, with the investment of more than Rs 7,500 crore, Bajaj Auto has acquired 100 percent stakes of Pierer Bajaj AG. Hence, the Indian two-wheeler company will now call the shots and decide the future of KTM.

Bajaj-KTM partnership in India goes a long way back as the two brands joined hands in 2007 when the Indian brand acquired a 14.5 percent stake in the Austrian brand. Gradually, Bajaj’s stake in KTM rose to 48 percent with time. It was three years back in 2021 when Bajaj Auto gained a 49.9 percent stake in Pierer Bajaj AG. The first KTM bike to roll out of Bajaj’s Pune factory was the Duke in 2012.

Presently, KTM has over 450 dealerships in 350 cities across the country. Some of the most popular company models in the Indian market are 390 Adventure, 200 Duke, RC 390, 250 Adventure and 160 Duke. Now, with Bajaj in the driver’s seat, we are likely to witness an aggressive strategy and multiple new motorcycle launches in the coming months.