Hero MotoCorp explores Ducati acquisition as banks approach
Hero MotoCorp confirmed it is in talks with banks to raise funds for a possible bid for Ducati, as the Italian marque’s private equity owner seeks a sale.
Hero MotoCorp has confirmed it is considering a bid for Ducati, after being approached by several banks about funding a potential acquisition. The Indian motorcycle and scooter manufacturer is weighing its options as Ducati’s owner, Investindustrial Holdings, looks to sell the Italian brand.
Pawan Kant Munjal, managing director of Hero MotoCorp, acknowledged the interest during an interview in New Delhi, stating that numerous banks have been in contact regarding Ducati. The company, formerly known as Hero Honda, has been seeking opportunities to expand internationally since ending its joint venture with Honda Motor Co. in 2011.
Ducati’s owner seeks €1 billion sale
Investindustrial Holdings, the private equity firm that owns Ducati, is reported to be seeking around €1 billion for the company. The Financial Times reported that this figure represents roughly three times Investindustrial’s initial investment in Ducati. The sale process has attracted interest from multiple parties, with bankers actively pitching the opportunity to potential buyers such as Hero MotoCorp.
Industry analysts in India have described Ducati as a strong strategic fit for Hero, citing Ducati’s international brand recognition and technical expertise. Hero, which leads the Indian market in motorcycle sales, has been looking to raise its global profile and product range after the Honda split.
Hero’s international ambitions
Hero’s interest in Ducati comes soon after the Indian firm announced a partnership with Erik Buell Racing (EBR) in the United States. Under this deal, Hero would sponsor two EBR teams in the AMA Pro Racing National Guard Superbike Championship, with EBR providing technology and design support for future Hero models. The Ducati talks signal a further step in Hero’s push to become a global player in the motorcycle industry.
Hero MotoCorp shares have performed strongly, with many analysts recommending the stock due to robust monthly sales growth. The company’s ability to finance a major acquisition such as Ducati would depend on the outcome of its ongoing discussions with banks and the terms of any potential deal.
Next steps for Ducati and Hero
At the time of reporting, no agreement had been reached and other buyers remained in contention. Hero’s ongoing talks with banks suggest that any formal offer would depend on securing suitable financing. The outcome will determine whether Ducati joins Hero’s portfolio or finds a home with another suitor.
