Bajaj Auto Secures Austrian Nod For Full KTM Takeover

Bajaj Auto Ltd. has received the green light from Austria's Takeover Commission to acquire complete control of Pierer Mobility AG (PMAG), the parent of premium motorcycle maker KTM AG, without triggering a mandatory public bid.

 This pivotal approval, granted under a "restructuring privilege" exemption, paves the way for Bajaj's wholly-owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV), to snap up the remaining 50.1% stake in their joint venture, Pierer Bajaj AG (PBAG), from Pierer Industrie AG (PIAG).

The nod comes after Bajaj pumped in a whopping €800 million lifeline earlier this year to rescue KTM from insolvency woes. This included €450 million as secured term loans, €150 million via convertible bonds, and an additional €200 million package, helping KTM settle 30% of creditor claims by May 2025, restart production, and exit court-supervised restructuring by mid-year. 

The duo's partnership dates back to 2007, when Bajaj grabbed a minority stake in KTM, evolving into Bajaj manufacturing KTM and Husqvarna bikes at its Chakan plant for export to over 60 countries.

With merger control and foreign investment clearances already in the bag from Austrian and other regulators, Bajaj must now adhere to transparency rules: notify the commission on deal closure, publicise the control shift, and spill details on related-party transactions with Pierer Industries till end-2026 to safeguard minority shareholders.

Bajaj's move underscores its aggressive play in the premium two-wheeler space, bolstering global muscle amid KTM's rally heritage and Bajaj's manufacturing chops. 

This is a natural progression of the long-standing alliance between the two companies, ensuring KTM's growth while unlocking synergies, noted a Bajaj spokesperson. Full integration is eyed for early 2026, potentially positioning Bajaj as a heavyweight in Europe's bike market.

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