Mahindra eying Italian two-wheeler maker Malaguti: report

13 Sep 2008

Mumbai: Utility and tractor major Mahindra & Mahindra Ltd is looking at acquiring Italian motorcycle and scooter maker Malaguti Moto, as part of the Indian company's plans to access new technology and a global network of suppliers to tap opportunities overseas.

''I can only confirm Mahindra & Mahindra's interest in Malaguti,'' Italian newspaper Il Giornale quoted Angelantonio Molfetta, chief executive of the European branch of Mahindra & Mahindra, as saying.

M&M, which recently picked up domestic two-wheeler major Kinetic's business for Rs120 crore, is reportedly in talks with Malaguti for a possible takeover. The company had also been in touch with other Italian companies like motorcycle maker Ducati, engine maker Lombardini Motori and car design firm Bertone, Molfetta said.

The closely-controlled Malaguti has business connections with Ducati, maker of the famed Italian two-wheeler brands like Aprilia, Beta Benelli, Italjet and Piaggio.

M&M is currently talking to several players at both the top and bottom end, including several Chinese companies, for kit and component sourcing arrangements as it looks to extend product base beyond the Kinetic range.