Daimler-MV Agusta deal likely on Nov 3

After months of rumours about the stake buyout, latest reports indicate that German automotive giant Daimler will be buying a minority stake in MV Agusta and the announcement is likely to be made on November 3.

Reports are still sketchy, but several media reports indicate Daimler will officially announce the purchase of the stake, believed to be between 25-30 per cent in a press conference at the Milan motorcycle show.

Last week, German daily Sueddeutsche Zeitung reported that Daimler would buy a 25 per cent stake via its AMG performance cars unit for around 30 million Euros (around $39 million or Rs 239 crore) with an option of raising its holdings in exchange for further investments. Buying a stake in Agusta would give Daimler access to high performance three cylinder engines which the Italian company has developed for its superbikes.

MV Agusta has won as many as 75 world championship driver and construction titles in the pre-1970s era. In 1992, the company was virtually given a new lease of life under motorcycle entrepreneur Claudio Castiglioni and renowned designer Massimo Tamburini when the F4 superbike was created.  One F4 belonged to King Juan Carlos of Spain and was loaned out to the Guggenheim Museum for an exhibit.

Over the past decade, the brand has come under financial duress and has gone through several owners that included Harley-Davidson and Malaysian state-owned carmaker Proton. Shortly before he died, Castiglioni bought back the Italian brand and it’s now run by his son.

The tie-up between MV Agusta and a giant like Daimler will be a shot in the arm for the Italian company which needs cash injection to take any future steps towards expansion.