Bajaj Auto to Acquire Majority Stake in KTM AG with €800 Million Investment

Strategic Shift in Ownership and Global Expansion

In a landmark move, Bajaj Auto announced that it will acquire majority control of KTM AG, the renowned Austrian motorcycle manufacturer. The acquisition will be executed through Bajaj Auto International Holdings BV (BAIHBV), a wholly owned subsidiary of the Indian two-wheeler giant.

This development marks a strategic transition for Bajaj Auto, moving from its existing role as a minority stakeholder to that of a majority owner. The company expects this to significantly bolster its position in the global premium and sports motorcycle market.

As part of this shift, Bajaj Auto also plans to acquire a controlling interest in Pierer Bajaj AG (PBAG), the parent company of Pierer Mobility AG, which owns KTM AG. This acquisition is subject to regulatory approval in Austria. At present, Bajaj Auto holds an indirect 37.5% stake in KTM through PBAG and Pierer Mobility AG.

€800 Million Commitment for Financial Stability

To facilitate the acquisition and support KTM’s financial health, BAIHBV has committed to a total investment of €800 million (approximately ₹7,765 crore). The funding package includes:

• €450 million (₹4,365 crore) as a secured term loan to KTM AG.

• €150 million (₹1,455 crore) via convertible bonds in Pierer Bajaj AG (PBAG).

• €200 million (₹1,945 crore) previously infused as shareholder debt.

Bajaj Auto stated that the acquisition would assist in KTM’s ongoing restructuring process, ensure operational continuity, and reinforce Bajaj’s global reach in the motorcycle segment.

Read More: CCI Approves Bajaj Group Firm’s Acquisition of Bajaj Allianz Insurance Units.

Bajaj Auto Share Performance 

As of May 22, at 1:15 PM, Bajaj Auto share price is trading at ₹8,661 per share, reflecting a decline of 0.31% from the previous day's closing price. Over the past month, the stock has surged by 6.39%.

Conclusion

The acquisition signifies a key milestone in Bajaj Auto’s international growth strategy, underscoring its ambition to lead in the global high-performance motorcycle market. With its financial support and strategic partnership with KTM, Bajaj Auto aims to drive operational resilience and future growth for both companies.
 

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