New Delhi: Bajaj Auto Ltd. have said that it have obtained regulatory clearance from the Austrian Takeover Commission, making way for their acquisition of control in Pierer Mobility AG (PMAG), the parent company of KTM AG. The ruling allows Bajaj’s completely-owned Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV), to take full control without the need to make a mandatory takeover bid to other shareholders.
The commission confirmed that the acquisition qualifies as a “restructuring privilege” under Austrian law, with the transaction being carried out to aid KTM’s ongoing financial turnaround. This effectively exempts Bajaj from the obligations that are usually imposed under the Austrian Takeover Act, which requires a public offer when control changes hands.
Through their subsidiary, Bajaj Auto already held a 49.9 per cent stake in Pierer Bajaj AG (PBAG), the joint holding company that controls PMAG. The other 50.1 per cent is with Pierer Industrie AG (PIAG). Under the agreements signed this year, Bajaj intends to buy all 50,100 shares held by PIAG, taking control of PBAG and indirectly also controlling PMAG and KTM AG.
The two companies have been partners since 2007, when Bajaj took a minority stake in KTM initially. Their partnership grew into one of the industry’s finest joint ventures, with Bajaj manufacturing quite a few KTM and Husqvarna models at their Chakan plant near Pune and exporting them to more than 60 countries.
The filing also suggests that Bajaj Auto have received necessary approvals for merger control and foreign investment authorities in Austria and other relevant jurisdictions. The Austrian Takeover Commission’s decision is the final step in this whole episode.
For the sake of complete transparency and safeguard of minority shareholders, the Austrian regulator have set certain reporting requirements. Bajaj Auto must notify the commission that all conditions are met, announce the change in control publicly and disclose all related-party transactions between Bajaj-linked entities and Pierer Industries until the end of 2026.
Earlier this year, Bajaj Auto had announced their strategy to take control of KTM’s holding company. The Indian automanufacturer had already provided €800 million in financial aid to help KTM AG fulfil court-ordered restructuring obligations and avert insolvency. This involved a €450 million secured term loan and €150 million in convertible bonds, in addition to an earlier €200 million aid package. The funding helped KTM meet a May 2025 deadline to repay creditors 30 per cent of their outstanding claims under their court-approved restructuring plan.