In mid-November, 2022, BSA Bikes introduced that it had signed an settlement with Peugeot Motocycles for European distribution of its machines. Whereas BSA had beforehand made it clear that it had plans to develop its community past the U.Ok., precise particulars weren’t beforehand accessible—and it was understood that worldwide distribution was nonetheless a method off. For riders within the nations the place Peugeot will likely be distributing BSA merchandise, this was a welcome bit of stories.
Now, as we famous on the time of that announcement, BSA Bikes is owned by Traditional Legends, which is a subsidiary of Mahindra and Mahindra. Peugeot Motocycles can also be a subsidiary of Mahindra and Mahindra, so a particularly oversimplified method of taking a look at it’s two arms of 1 firm reaching out to distribute extra bikes to a higher potential buyer base.
Nonetheless, as is commonly the case, there’s a bit extra happening behind the scenes on this case. On November 10, 2022, Mahindra and German personal fairness agency Mutares introduced that Mutares submitted a suggestion to amass 50 p.c fairness in Peugeot Motocycles, together with a controlling stake of 80 p.c within the French OEM.
This deal is, after all, topic to the approval of antitrust authorities, and is predicted to shut someday in Q1 of 2023—so it’s not full presently. Nonetheless, assuming that it does undergo, meaning Mutares could have sole decision-making authority for Peugeot Motocycles and its future strikes. So, who’s Mutares?
The personal fairness agency is broadly identified for buying medium-sized corporations, turning them round, after which promoting the improved variations down the highway. Actually, the trace is correct within the title of the press launch that each corporations issued, which reads, “Mahindra companions with Mutares for remodeling Peugeot Motocycles.”
“We’re delighted to welcome Mutares to Peugeot Motocycles. Our efforts are directed in direction of sustaining this French legacy model that has been delighting prospects for 124 years. With a longtime track-record of reworking corporations throughout Europe, coupled with their experience within the automotive enterprise, Mutares is a perfect associate to strengthen and develop the model with persevering with help from Mahindra and Mahindra,” M&M govt director of auto and farm sectors, Rajesh Jejurikar, mentioned in an announcement.
“That is Mutares’ thirteenth acquisition in 2022. Peugeot Motocycles is an internationally acknowledged model constructed on a wealthy historical past because the world’s oldest producer of motorized two-wheelers. We’re very proud to be related to the model and I strongly imagine that we can leverage the true potential of the corporate primarily based on our huge expertise within the business and powerful operational crew and along with our associate M&M. Moreover, Peugeot Motocycles acts as an OEM and we see an enormous potential of robust synergies arising inside our Automotive & Mobility phase,” added Mutares chief funding officer Johannes Laumann in the identical assertion.
What does this imply for Peugeot Motocycles? It’s, after all, far too early to even speculate simply but. The corporate headquarters is situated in Mandeure, France, the place it additionally has a producing facility and builds each two- and three-wheeled machines. It additionally presently has a three way partnership with Jinan Qingqi Motorbike Firm, which is predicated in China. Like many different OEMs in 2022, it additionally maintains extra manufacturing partnerships throughout Asia.
Mahindra and Peugeot’s relationship goes again a number of years. In 2015, M&M bought a 51 p.c stake in Peugeot. It adopted that acquisition 4 years later, when it bought the opposite 49 p.c in 2019 and thus owned Peugeot Motocycles in its entirety. Now, a handful of years later, it’s partnering with Mutares to strive a distinct strategy. We’ll have to attend and see what this implies for Peugeot Motocycles—a model with over 124 years of historical past—going ahead.