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Awaiting its new owner

Eicher Motors’ acquisition of Ducati will give it a foothold in the super-premium segment

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The stock price of Eicher Motors hit an all-time high of Rs.33,328 today amid reports that the Siddhartha Lal-led company is in the final stage of  negotiations to acquire Italian superbike maker Ducati for $1.8 billion. While the company is yet to make a formal announcement, analysts feel that such a deal augurs well for Eicher Motors. “The deal would give Eicher a larger global footprint. The company wants to increase its exports and this deal should facilitate that,” says Sneha Prashant, analyst at HDFC Securities Institutional Research.  In August 2017, the company exported 1,105 units of Royal Enfield. Eicher has already opened exclusive stores in US and Australia. In the international market, the company has 26 exclusive stores and a presence in 600 multi-brand stores. “For Eicher, it would give them presence in 500 cc and above where it has no offering as yet. For Ducati, it would be an ideal way to enhance its India presence,” Prashant adds.