Harley-Davidson Wants to Buy Ducati

Ever since news circulated that Volkswagen wanted to put up Ducati for sale back in April 2017, various motorcycle brand names and several buyout firms expressed their interest in the possible acquisition of the iconic brand.

This week, American motorcycle maker Harley-Davidson announced that it wants in on the takeover bid for the Italian motorcycle make. If the sale pushes through, which should be worth up to $1.67 billion dollars, it can potentially bring two of the most famous motorcycling names together.

Other interested parties

Aside from Harley-Davidson, other major names hellbent in acquiring Ducati include Bajaj Auto (India), and Royal Enfield (UK). Another Indian brand, Hero MotoCorp, expressed interest right after Volkswagen’s announcement, but has apparently withdrawn since. According to Indian media, Bajaj Auto is already preparing its bids.

Other interested names include Suzuki (Japan), Honda (Japan), and TVS Motor Company (India). Some names outside of the motorcycle manufacturing industry have also shown interest, such as private equity firms Bain Capital, KKR, and Permira.

Selling Ducati is a way for Volkswagen to recoup its losses after taking an $18.28 billion hit on the emissions scandal it got involved in.

What a Harley-Davidson/Ducati partnership could mean

If a Harley-Davidson/Ducati merger happens, it would put together the maker of touring bikes like the American symbol ‘Electra Glide with a leading European maker of high performance bikes with a distinguished racing heritage.

Harley Davidson has hired financial giant Goldman Sachs to work on the deal on their behalf. Ducati’s current owner Audi, a wholly owned subsidiary of Volkswagen has tasked global investment banking firm Evercore to handle the deal for them. Bidding is tentatively scheduled for July 2017. However, sources are saying that Volkswagen isn’t rushing to find a buyer and prefers to seal the deal after the Esposizione mondiale del motociclismo (EICMA) motorcycle show in Milan this November.

Ducati history

Based in the northern city of Bologna, Italy, Ducati started out as a maker of radio components and vacuum tubes before venturing out to building motorcycles in the 1950s. its factory remained open throughout World War II despite being the target of enemy bombings. Ducati’s sportbikes won the Superbike world championship 14 times, with Troy Bayliss and Carl Fogarty as its most prominent riders.