Tata Motors to Acquire Italy's Iveco Group in €3.8 Billion Deal, Creating Global Commercial Vehicle Giant

Tata Motors has announced a landmark €3.8 billion (₹38,240 crore) all-cash acquisition of Italy’s Iveco Group, excluding its defence business—a move set to reshape the global commercial vehicle landscape.

Iveco Group N.V., founded in 1975 and headquartered in Turin, Italy, is a global leader in commercial vehicles, powertrain systems, and mobility solutions. Publicly listed on Borsa Italiana, the group operates through renowned brands like Iveco (trucks), Iveco Bus, and FPT Industrial (engines and transmissions), serving over 160 countries through an extensive production and service network

Strategic Highlights

• Global Footprint: The merger will create a €22 billion (₹2.2 lakh crore) commercial vehicle powerhouse with operations spanning Europe (~50% revenue), India (~35%), and the Americas (~15%).
• Complementary Strengths: Tata’s dominance in emerging markets and Iveco’s leadership in Europe offer a balanced portfolio and manufacturing synergy.
• Deal Structure:
  • Tata Motors will acquire 100% of Iveco’s common shares via a Dutch-based entity.
  • Offer price: €14.1 per share (excluding dividends from defence divestment).
  • Iveco’s defence division will be sold to Leonardo S.p.A. for €1.7 billion before March 2026.
  • Iveco will be delisted from Euronext Milan and become a wholly owned subsidiary of Tata Motors.

Strategic Rationale

• Post-Demerger Leap: Following the demerger of Tata’s commercial vehicle business, this acquisition positions the company for global competitiveness.
• Innovation & Sustainability: Both companies share a vision for sustainable mobility and innovation in commercial transport.
• Leadership Endorsement:
  • Natarajan Chandrasekaran, Chairman of Tata Motors: “This is a logical next step... allowing the combined group to compete on a truly global basis.”
  • Suzanne Heywood, Chair of Iveco Group: “A strategically significant combination... positive for employment and industrial footprint.”

Timeline & Conditions

• Expected Completion: First half of 2026, pending regulatory approvals and defence business separation.
• Minimum Acceptance: 80–95% of Iveco shares, depending on shareholder resolutions.