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Is the Honda Harley Merger Really Happening?

by Steve
Sunday, June 24, 2007

At first, I thought it was just another prank, when I heard that Honda will be buying a majority stake in Harley-Davidson.

Then I noticed the headlines were coming from Forbes, Reuters, and Associated Press, three very well respected news sources.

And then, I read the articles that said it was a rumor.

So, is Honda really going to buy out Harley-Davidson?

No one knows right now. The articles say that neither Harley nor Honda is willing to discredit the rumor. However, experts all agreee that such a merger would never get the blessing from Washington DC because it would create a near monopoly on heavyweight motorcycles.

Under the supposed rumor, Honda would control 60% of Harley.

Here are links to some articles, you decide...

Associated Press
http://biz.yahoo.com/ap/070622/harley_davidson_mover.html?.v=1

Forbes
http://www.forbes.com/markets/2007/06/22/harley-davidson-honda-markets-equity-cx_er_0622markets19.html?partner=rss

Reuters
http://www.reuters.com/article/mergersNews/idUSN2248287920070622

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1 Comments:

  • I see no reason why DC would have a problem. Honda and harley may be the two biggest motorcycle manufacturers, but together, they're FAR from a monopoly. Suzuki and Yamaha are pretty big competitors in the cruiser market, and as of right now, it's arguable that their motorcycles are technicalogically better than harley or honda.

    By Anonymous John, at 7/06/2007 12:00:00 PM  

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