Rumour Mill : Polaris eyeing ownership stake in MV Agusta

Polaris is planning to buy a controlling stake in the Italian motorcycle maker MV Agusta 

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Added in: MV Agusta

MV Agusta Diablo Brutale (5)

We all know and acknowledge that MV Agusta is one of the greatest motorcycle brands. We love the motorcycles, their design, their legacy and their performance. The price, maybe not so much, but we love the brand nevertheless. Of late, the Italian bike maker has been selling a good number of motorcycles too, they shifted more than 9000 units last year, we hear, up 30% from the previous year. And yet, there doesn’t seem to be an end to the company’s monetary woes – the debts, the investments, the empty coffers – the legendary Italian bike maker just cannot keep moving forth if things stay the way they are.

Read: MV Agusta Brutale 800 review 

Read: MV Agusta Diablo Brutale: A tribute to Pirelli DIABLO Rosso III tyres

So what’s the problem you might ask – if it’s a great brand, is selling well, and that too at a hefty premium, what possibly could be the problem? Well, all of it boils down to CEO Giovanni Castiglioni’s obsession with not losing definitive control of the business. The blokes at Daimler, who hold about 25% stake in the company through Mercedes-AMG, aren’t apparently finding the association a smooth-sailing one. What’s more, MV Agusta has secured some hefty loans on the back of its association with the Germans. And now when the company needs more money, the CEO doesn’t want to part with his control.

Polaris Sportsman 110 (2)

Amidst all this chaos, Polaris, the world leader in off-roaders and owner of legendary American brands Indian Motorcycle and Victory is rumoured to be showing interested in buying controlling stakes in the company. Controlling stakes, mind, which Mr. Castiglioni might have severe issues parting with.

Castiglioni in the meantime seems keen on buying AMG out of MV Agusta by paying the $16.4 million loan from Banca Popolare di Milano. This will apparently be followed by a cut in production to bring everything to a sustainable state. Polaris has enough money to realize every plan Mr Castiglioni may have, but it’s rather improbable that they’ll agree to his controlling stakes terms. And that’s probably what the two parties are currently discussing across the negotiating table.

While there’s no word about the development from either of the parties, the rumour source is a rather dependable one. We’ll keep you posted about all developments surrounding the Italian exotic maker. Stay tuned.

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