Bajaj Auto's Strategic Move: Restructuring of KTM AG

Bajaj Auto's subsidiary has received green light from Austrian authorities for its acquisition of Pierer Mobility AG. This move is part of a greater restructuring strategy involving KTM AG. With regulatory approvals in place, Bajaj Auto aims to gain management control and stabilize the financially troubled KTM AG.

Bajaj Auto's subsidiary has successfully obtained approval from the Austrian Takeover Commission for its acquisition of Pierer Mobility AG, the holding company of KTM AG. This decision means Bajaj Auto International Holdings BV (BAIH) is not required to make a mandatory takeover offer to Pierer Mobility AG's shareholders.

Alongside this approval, Bajaj Auto has received nods from various merger control authorities and the Foreign Investment Control - Austria, as part of their plan to take over management control of Pierer Bajaj AG and consequently Pierer Mobility AG and KTM AG. This is facilitated by acquiring shares from Pierer Industrie AG.

This development aligns with Bajaj Auto's recent strategy to stabilize KTM AG amid its judicial restructuring. The company plans to infuse up to Euro 150 million into its wholly-owned subsidiary to fund the acquisition and restructuring, aiming to strengthen its position in the automotive sector.

(With inputs from agencies.)