Polaris to Take Over MV Agusta?

If rumours are to be true, American company Polaris is considering buying revered Italian motorcycling marquee MV Agusta. Polaris Industries, primarily a manufacturer of ATVs, snowmobiles, and battery operated vehicles, also manufactures motorcycles under the Victory Motorcycles and Indian Motorcycles subsidiaries.

MV Agusta has not been in a good state for quite some time as far is financial matters are considered. In order to generate funds the company sold 25 per cent of its shares to AMG more than a year ago. However, that has not helped much to give the brand a stable base. Also, as per the agreement, if the participation of AMG should go below 20 per cent, MV Agusta would be entirely responsible for repaying the loan due to it.

AMG had also put forth an offer to completely buy the entire company but Giovanni Castiglioni, CEO of MV Agusta, did not want to part away from rights to the company. It was later learned that MV Agusta had filed for a continuity agreement to prevent bankruptcy.

Polaris Industries, on the other hand, has the finances to provide the necessary backing for the beleaguered MV Agusta. The company has recognition and a far-flung global network that will further provide a good boost for the Italian brand to grow. MV Agusta had performed well in 2015, reporting up to 30 per cent increase in sales. However, over the period the debts have increased also, making it even more difficult for the brand.

In India, MV Agusta recently made its official entry with Kinetic Group. If things are to unfold as is rumoured MV Agusta will get access to Polaris and Indian Motorcycle outlets in the country, thus giving it better reach to its customers. Still, it too soon to confirm anything regarding the deal and it will be a matter of time before everything is clarified. Watch this space.