Heroic Bid On Ducati?

Is Hero MotoCorp considering to take over Ducati?

Since 2010, when Hero decided to part ways with technology partner, Honda of Japan, the Indian company has been on the lookout for a viable long-term partner that could bring along a thorough know-how of two-wheeler technologies. Being the world’s biggest two-wheeler makers, Hero know how to sell bikes; all they
need is strong R&D that churns out fresh, attractive and dependable vehicles, which have been the pillar of Hero products in the last three decades.|

Internationally, news agencies are abuzz with reports of Ducati Motor Holding SpA being on the lookout for financial support and a possible buy-out. The Italian superbike maker has a profile that fits perfectly to complete Hero MotoCorp’s dream of becoming a global player. No wonder, this has given rise to rumours that the Indian company is in talks with bankers to buy Ducati. In doing so, the company would gain access to Ducati’s advanced technology, which will come rather handy once Hero and Honda’s licensing comes to an end in 2014.

Speaking to the media, Pawan Kant Munjal, MD, Hero MotoCorp, said that a number of bankers had approached them with a proposition for Ducati buy-out and that Hero had been talking to a number of people. And it’s not just Ducati, but the company speaks to whoever that comes to them.

Other prominent front-runners include the German automobile giants, Volkswagen and BMW. Though there was speculation that even Mahindra & Mahindra had shown interest in this acquisition, it now seems to have fizzled out. Hero MotoCorp have the funds to make the final bid and the current slowdown in European economy would also ensure that they get the iconic Italian company for a good price. The big question that now remains is will Hero MotoCorp manage to do in the global two-wheeler industry what Tata Motors did by acquiring Jaguar and Land Rover in the four-wheeler segment? Well, your guess is as good as ours.


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