Bajaj Auto arm gets regulatory nod to take control over Pierer Mobility AG; shares settle marginally higher

Following the announcement, shares of Bajaj Auto settled 0.37% higher at ₹9,080.50 per equity share on the National Stock Exchange (NSE).

The commission ruled that Bajaj Auto International Holdings BV (BAIH), a wholly-owned subsidiary of the Pune-based firm, is under no obligation to make a mandatory takeover bid to the shareholders of Pierer Mobility AG.

Bajaj Auto, through Bajaj Auto BV, holds a 49.9% stake in its associate, Pierer Bajaj AG (PBAG) in Austria. The remaining controlling stake in PBAG is held by Pierer Industrie AG. PBAG holds a nearly 75% stake in its subsidiary, Pierer Mobility AG (PMAG).

"We hereby inform that the Austrian Takeover Commission on Thursday, October 23 has confirmed the restructuring privilege for the acquisition of control by Bajaj Auto International Holdings B.V. with no obligation to make a mandatory takeover bid to the shareholders of PIERER Mobility AG," Bajaj Auto said in a regulatory filing.

Besides the Austrian Takeover Commission, approvals have since been received from merger control authorities across the relevant jurisdictions and the Foreign Investment Control - Austria, it added.

On May 22, the company said it plans to acquire the management control of PBAG and thereby of PMAG and KTM, through its wholly-owned subsidiary BAIH BV. Meanwhile, BAIH BV intends to acquire all 50,100 shares held by Pierer Industrie AG in Pierer Bajaj AG.

The relevant agreements relating to the acquisition of 100 shares in PBAG and a call option agreement relating to the acquisition of up to 50,000 shares in Pierer Bajaj AG were concluded in April and May 2025.

Both agreements are subject to the same regulatory conditions precedent with regard to merger control, subvention control and investment control approvals and do not trigger a mandatory takeover bid under the provisions of the Austrian Takeover Act, Pierer Mobility AG stated.

In May this year, Bajaj Auto announced that its Netherlands-based arm is in negotiations and exploring various alternatives to participate in the restructuring of KTM AG following a plan approved by the creditors of the Austrian bike maker.

In a regulatory filing, Bajaj Auto said, "Our wholly-owned subsidiary, Bajaj Auto International Holdings BV, Netherlands (Bajaj Auto BV), is in negotiations and exploring various alternatives to participate in the restructuring of KTM AG, pursuant to a plan approved by its creditors."

The company further said, "Involvement by Bajaj Auto BV in the restructuring as well as arrangements in this behalf are being finalised." Bajaj Auto was clarifying to bourses on reports of its offshore wholly-owned subsidiary securing a Euro 566 million loan from offshore lenders which could be for the purpose of funding the restructuring of KTM AG.

In February this year, Bajaj Auto board had approved investment of up to Euro 150 million (₹1,364 crore) in its wholly-owned arm Bajaj Auto BV to fund the needs of the latter towards investment opportunities.

The capital infusion would be made in one or more tranches depending on the fund requirements up to March 31, 2026, the company had said.

The development comes at a time when Bajaj Auto is heavily linked with the possibility of increasing its stake in the financially stressed KTM AG to bail out the Austrian bikemaker that has been undergoing a judicial restructuring.

Bajaj Auto share price

In the past five trading sessions, Bajaj Auto shares have slipped 1.12% and gained 2.73% over the past month. Over the last six months, the stock has advanced 10.72%, while on a year-to-date basis, it is up 3.89%.

The shares hit a 52-week high of ₹10,735.10 on October 23, 2024, and a 52-week low of ₹7,089.35 on April 7, 2025. As of October 24, Bajaj Auto’s market capitalisation stood at ₹2,53,579.87 crore.