Bajaj Auto has officially received the green light to take full control of KTM after clearance from the Austrian Takeover Commission. This marks a major milestone in Bajaj’s global journey, strengthening its presence in the international motorcycle market. Let’s understand what this means, why it’s important, and how it could shape the future of both companies.
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ToggleBajaj’s Big Move in Europe
Bajaj Auto Ltd., one of India’s largest two-wheeler manufacturers, has been granted permission by the Austrian Takeover Commission to acquire Pierer Mobility AG (PMAG) — the parent company of KTM. The regulatory body has allowed Bajaj Auto International Holdings BV (BAIHBV), a Bajaj subsidiary, to take over control of KTM without making a mandatory open offer to other shareholders.
This special approval comes under what’s known as the ‘restructuring privilege’ clause. With this, Bajaj can now buy the remaining 50.1% stake in Pierer Bajaj AG, the joint venture that currently manages KTM’s operations. Until now, Bajaj held a 49.9% stake, while the rest was owned by Pierer Industries AG.
What the ‘Restructuring Privilege’ Means
The exemption is a rare approval granted during special circumstances, usually when a company is undergoing internal restructuring or facing financial stress. In KTM’s case, it allows Bajaj to take over full control without needing to buy out small shareholders compulsorily.
However, Bajaj must follow certain rules to ensure fairness and transparency. This includes informing the Austrian authorities about any changes in ownership, disclosing related-party transactions, and maintaining complete transparency until the end of 2026.
How Bajaj Saved KTM from Financial Trouble
Earlier this year, KTM was struggling financially and was close to insolvency. At that critical moment, Bajaj stepped in and invested around 800 million euros to help revive the company. This included:
- 450 million euros as secured loans
- 150 million euros through convertible bonds
- 200 million euros as an additional financial package
This huge support allowed KTM to clear its debts, restart production, and avoid a court-led restructuring process. It was a lifeline that kept the iconic European brand alive.
A Partnership That Started in 2007
Bajaj’s association with KTM is not new. The partnership began back in 2007, when Bajaj bought a minority stake in the Austrian brand. Since then, the Indian manufacturer has played a vital role in producing KTM and Husqvarna motorcycles at its Chakan plant in Pune, which are exported to markets around the world.
With this full acquisition, Bajaj is not only strengthening its European foothold but also showcasing how an Indian company can successfully manage and grow a global performance motorcycle brand.
What This Means for the Motorcycle Industry
This move positions Bajaj as a global motorcycle powerhouse. Taking full control of KTM will allow the company to streamline operations, improve product development, and possibly introduce more India-made KTM and Husqvarna models in both domestic and international markets.
Moreover, it shows how Indian companies are becoming major global players by investing smartly and taking leadership in top international brands.
Conclusion
The Austrian regulator’s approval for Bajaj to take over KTM marks a new era for the Indian auto industry. From being a partner to becoming the full owner, Bajaj has shown its strategic strength and long-term vision. The move not only saves a legendary European brand but also cements India’s growing influence in the global automotive space.
FAQs
What does the takeover mean for Bajaj Auto?
It means Bajaj will now have full control over KTM, allowing it to make independent decisions regarding the company’s strategy, production, and global expansion.
Why was KTM in financial trouble?
KTM faced financial pressure due to high operational costs and debts. Bajaj’s funding helped the company recover and continue production.
What is the ‘restructuring privilege’ clause?
It is a special exemption that allows a company to take control of another without making an open offer, usually granted during financial restructuring.
How long have Bajaj and KTM been partners?
Bajaj and KTM have been partners since 2007, and together they have built a strong presence in the global motorcycle market.
Will KTM bikes continue to be made in India?
Yes, KTM and Husqvarna bikes will continue to be produced at Bajaj’s Chakan plant in Pune for both domestic and export markets.