TVS in talks to buy British motorcycle brand Norton
Local two- and three-wheeler maker TVS Motor Co. Ltd is in talks with well-known British motorcycle maker Norton Motorcycles (UK) Ltd to own the brand, along with its assets and liabilities, two people familiar with the development said at condition of anonymity.
Norton Motorcycles, 122, ran out of money in January and did not pay taxes. Norton’s last owner, Stuart Garner, with business interests in real estate and hospitality, acquired the legacy brand in 2008.
â€œNorton is currently in the liquidation phase and the UK administration plans to sell the brand, its assets and its product portfolio to raise funds. The company must pay its sellers, employees and creditors, and also pay taxes. So there are a lot of liabilities on Norton right now, â€said one of the two people named above.
Consultants handling the Norton case are in talks with several potential buyers, including TVS Motor, he said.
â€œMaybe now is a good time to negotiate hard,â€ the person said.
Norton liquidation consultancy BDO Global posted a notice on the company’s Twitter account on January 30.
â€œAdministrators take all measures to ensure that customers, staff and suppliers are taken care of and wish to minimize the distress of everyone involved,â€ said BDO Global.
In response to mint“Said TVS Motor:” TVS Group does not comment on any speculation in the market. “
An emailed query to Garner went unanswered until press time.
TVS Motor’s interest in Norton’s assets indicates that it aims to expand its portfolio of mid-size motorcycles in India and other developing markets, the second person quoted earlier said.
Mid-size motorcycles, powered by 250cc-800cc engines, generally offer lighter handling and better fuel efficiency than liter class models.
The midsize motorcycle segment in India is dominated by Royal Enfield, with 350-650cc models on sale. Royal Enfield’s market share in this category was 96% in fiscal 2019, according to industry data.
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