In­dIa’s Royal En­fIEld makEs bId foR du­catI

Of­fers up to US$2 bil­lion to Volk­swa­gen Group for Ital­ian brand, but unions might be slow­ing the process

Calgary Sun - Autonet - - NEWS - Neil Vo­raNo

The owner of Royal En­field, the In­dian mo­tor­cy­cle maker known for its small-dis­place­ment bikes that have changed lit­tle since the com­pany was cre­ated in 1901, has re­port­edly made a bid to pur­chase the Ital­ian mo­tor­cy­cle man­u­fac­turer Du­cati from the Volk­swa­gen Group, ac­cord­ing to the Eco­nomic Times news­pa­per.

En­field is owned by Mum­bai-based Eicher Mo­tors, which re­port­edly of­fered up to US$2 bil­lion to pur­chase Du­cati.

Volk­swa­gen put out bid ten­ders for the Ital­ian brand ear­lier this year, and Eicher is be­lieved to be the only Asian firm still in the bid­ding process, which closes at the end of this month. Also be­lieved to be still in the bid­ding is Har­ley-David­son.

Re­sis­tance from Ger­man trade unions seems to have put the bid­ding process on hold for now. But if they are wor­ried about how an In­dian com­pany will carry on the legacy of Du­cati, they need not look fur­ther than Jaguar Land Rover, which has flour­ished since be­ing bought by Tata in 2008 and has re­mained in Bri­tish fac­to­ries.

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