Bajaj Gets Austrian Nod: Breakdown of the KTM Takeover Deal
In a milestone moment for the world two-wheeler market, Bajaj gets Austrian nod to take over Pierer Mobility AG, the parent entity of the iconic motorcycle brands KTM, Husqvarna, and GASGAS. The action represents a turning point in the long-standing collaboration between Bajaj Auto and KTM and positions the Indian behemoth firmly in Europe’s premium motorcycle market.
Bajaj Auto secures Austrian approval to take full control of KTM, marking a new chapter in global motorcycling.
The Austrian Takeover Commission has formally cleared the acquisition by Bajaj Auto through its Dutch-registered subsidiary, Bajaj Auto International Holdings BV. The clearance gives Bajaj the Austrian approval for complete takeover of Pierer Bajaj AG without having to make a public offer of takeover to other shareholders, which is permitted under Austria’s restructuring privilege law.
This regulatory green signal effectively enables Bajaj to emerge as the majority shareholder of KTM’s parent holding, en route to a full financial and operational turnaround.
How Bajaj Gets Austrian Nod
When Bajaj gets Austrian nod, it means more than mere regulatory go-ahead. It is an acknowledgment of Bajaj’s efforts in saving one of Europe’s most popular motorcycle brand from financial distress. The Austrian Takeover Commission gave its approval on October 23, 2025, stating that Bajaj Auto International Holdings BV would not need to make a mandatory bid under the Austrian Takeover Act.
This approval followed a series of intricate negotiations and deals done in April and May 2025, under which Bajaj offered to buy all 50,100 shares of Pierer Bajaj AG owned by Pierer Industrie AG, belonging to Austrian entrepreneur Stefan Pierer. On completion, this takeover provides Bajaj indirect possession of 75 percent of Pierer Mobility AG, with ownership of KTM AG, Husqvarna, and GASGAS.
The takeover cements Bajaj’s strategic intent to establish a presence in the European market, taking the company’s global motorcycle presence to record highs.
Bajaj gets Austrian nod to take control of KTM – the iconic 900 RC-R represents a new era for the Indian motorcycle giant in Europe.
KTM’s Financial Crisis and Bajaj’s Rescue Mission
The greenlight that Bajaj gets Austrian nod comes after months of financial woes for KTM. In late 2024, KTM AG submitted itself for self-administered insolvency amid dire liquidity concerns, declining sales, and excess stock of over 265,000 motorcycles, equivalent to a year’s production.
By mid-2025, Pierer Mobility’s sales had declined by 29 percent, and operating losses had exceeded 480 million euros, aggravated by impairments of 850 million euros. Overall debt was over 3 billion dollars. With the pressure from the creditors building up, KTM needed to get fresh capital of a minimum of 800 million euros to keep going.
The KTM 125 Duke represents Bajaj Auto’s long-standing partnership and production success after Bajaj gets Austrian nod to acquire KTM’s parent brand.
That’s where Bajaj intervened.
The €800 Million Debt Relief Package
Following Bajaj gets Austrian nod, the key component of the takeover is the gigantic 800 million euro debt restructuring scheme crafted by Bajaj Auto to save KTM. The strategy involves:
• 450 million euro term loan secured to KTM AG
• 150 million euro convertible bonds issued by Pierer Bajaj AG
• 200 million euro shareholder debt funding already supplied by Bajaj
This package of funds was arranged by Bajaj Auto’s Dutch-based subsidiaries and supported by leading international banks like JP Morgan Chase, DBS Bank, and Citigroup Global Markets, which provided a 632 million dollar credit to fund KTM’s resurgence.
The clearance that Bajaj gets Austrian nod guarantees these funds can now be put to immediate use to settle creditor dues, revive production, and steady KTM’s European operations.
Timeline of Key Developments
To get a better grasp of how Bajaj gets Austrian nod and has come this far, here’s the chronology breakdown:
• November 2024: KTM initiates judicial restructuring in Austria
• February 2025: Creditors approve a plan of restructuring with a requirement of 30 percent cash payout
• May 2025: Bajaj raises 566 million euro funding from offshore lenders
• October 2025: Austrian Takeover Commission gives final approval
• November 2025 (Expected): Completion of transaction and total Bajaj ownership of Pierer Bajaj AG
After the final step is achieved, KTM’s restructuring plan will be legally binding, enabling it to come out of insolvency proceedings and resume operations at full capacity.
Why the Takeover Is Significant to Bajaj and India
The reality that Bajaj gets Austrian nod has far-reaching consequences that go beyond the European market. With complete ownership of KTM and its subsidiaries, Bajaj opens the door to global technology, high-end product design, and sophisticated engineering facilities in Austria.
For India, this progress fortifies the nation’s global two-wheeler market presence. Bajaj’s Chakan plant already produces small-displacement KTM and Husqvarna models for export to more than 80 nations. Now, Bajaj will seamlessly have a worldwide R&D and production approach.
The partnership has the potential to create new worldwide motorcycle platforms, more advanced electric mobility solutions, as well as shared innovation pipelines between India and Europe.
Rajiv Bajaj’s Vision for the Future
In his comments on the approval, Bajaj Auto Managing Director Rajiv Bajaj pointed out that though KTM’s financial woes were severe, the move was a long-term call. He underlined that Bajaj receives Austrian approval not only to buy but to reconstruct KTM as a stronger and more sustainable brand.
He added, “This collaboration has always been about making world-class bikes. Now, our intent is to revitalize KTM’s prowess and drive innovation faster.”
Strategic Impact on the Global Motorcycle Industry
With Bajaj gets Austrian nod, the group now owns a portfolio comprising KTM, Husqvarna, GASGAS, and MV Agusta brands. This makes Bajaj one of the world’s most dominant motorcycle groups.
The acquisition gives Bajaj strategic entry into developed markets in Europe, North America, and Australia, providing the Indian carmaker with a solid premium foothold to match its supremacy in the commuter category in Asia and Africa.
The acquisition also presents opportunities for co-development of electric motorbikes, enhanced supply chain integration, and product localization that would accrue to both brands.
Conclusion: Bajaj’s Bold Leap into Global Leadership
As Bajaj gets Austrian nod to complete the acquisition of KTM, the action marks a milestone in the 78-year-old company’s history. From a minority partnership in 2007, it has transformed into complete ownership of one of Europe’s most prestigious motorcycle brands.
With its 800 million euro bailout, a coherent revival plan, and a strong focus on innovation, Bajaj Auto is not only rescuing KTM, it’s defining the destiny of the world of motorcycling.
FAQs – Bajaj Gets Austrian Nod: KTM Acquisition Made Easy
1. What is it when Bajaj gets Austrian nod?
When Bajaj gets Austrian nod, it simply means that the Austrian Takeover Commission has formally approved Bajaj Auto’s proposal to acquire Pierer Mobility AG, the holding company of KTM, Husqvarna, and GASGAS. This approval enables Bajaj to acquire the firm without issuing a public offer to other shareholders.
2. Why did Bajaj require Austrian approval for the KTM acquisition?
Bajaj required the Austrian approval since Pierer Mobility AG has its base in Austria and is governed by Austrian takeover laws. With Austrian approval, Bajaj can effect the takeover under the law of restructuring privilege so that the takeover is executed smoothly and legally.
3. What percentage of stake will Bajaj hold after the KTM acquisition?
Once Bajaj receives Austrian approval and the deal is finalized, Bajaj Auto will indirectly hold approximately 75 percent of Pierer Mobility AG, providing it with majority control of KTM, Husqvarna, and GASGAS brands.
4. What economic crisis prompted Bajaj’s intervention?
KTM was in a serious financial crisis towards the end of 2024 with declining sales, 265,000 motorcycles stuck as unsold inventories, and debts of over 3 billion dollars. Bajaj intervened with an €800 million rescue package after receiving Austrian approval to prop up and revive KTM’s business.
5. How much is Bajaj investing in the KTM rescue deal?
After Bajaj gets Austrian nod, Bajaj Auto is investing €800 million in a debt restructuring package that includes loans, convertible bonds, and shareholder investment. This package allows KTM to pay off creditors, resume production, and consolidate its European foothold.
6. What are the advantages for Bajaj after receiving Austrian approval?
After Bajaj gets Austrian nod, the company attains the complete ownership of high-end motorcycle brands and access to state-of-the-art European R&D centers. This consolidates Bajaj’s international presence, facilitating design collaboration, electric mobility, and future-generation motorcycles.
7. How does the takeover affect the Indian two-wheeler industry?
The acquisition following the Austrian approval of Bajaj’s takeover positions India better in the international motorcycle market. Bajaj’s Chakan facility currently exports KTM and Husqvarna models to more than 80 nations, and this acquisition will position India better in high-end motorcycle production.
8. What was Rajiv Bajaj’s role in this acquisition?
Rajiv Bajaj, Managing Director of Bajaj Auto, spearheaded the negotiation and strategic direction for the buyout. He underscored that Bajaj gets Austrian nod not only to buy KTM, but to restore it as a stronger and more innovative global brand.
9. Which banks financed Bajaj in the KTM acquisition deal?
The €800 million rescue package unveiled following Bajaj gets Austrian nod was funded by JP Morgan Chase, DBS Bank, and Citigroup Global Markets. These banks offered funding and credit facilities to enable Bajaj to finalize the takeover.
10. What will be the future of global motorcycling under Bajaj-KTM takeover?
With Bajaj gets Austrian nod, the Indian manufacturer will become a market force to reckon with in the premium motorcycle space. The partnership will spur innovations in electric motorcycles, international design platforms, and India-Europe production synergies.
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