The Italian motorcycle brand MV Agusta is in some financial trouble and a breath of oxygen could come from Mercedes-Benz, according to some reports.
MV Agusta, headquartered in Varese, Italy and originally founded in 1945 by Domenico Agusta, it has become a legendary name in the world of motorcycles. In November 2014, Daimler decided to get involved in this business and the German automaker purchased a 25 percent chunk of the Italian brand through its Mercedes-AMG performance division. Despite the fact that Agusta has managed to achieve some solid sales and profit results in recent years, it still has a 40-million-euro debt (44.8 million dollars) to its suppliers and banks. Therefore, it has started an insolvency procedure to keep its operations alive, giving company’s creditors three months to accept the proposal.
According to some reports from the Italian media, Mercedes-Benz sees Agusta’s financial predicament as an opportunity to increase its stake, aiming to become a majority shareholder. Even if the negotiations are underway, there will not be an easy task to convince MV Agusta’s president and 75 percent owner Giovanni Castiglioni to give up control on his company. He is allegedly is talks with other partners as well, looking to strike a deal with the private-equity firm Investindustrial, the former owner of Ducati.