Tata Motors is all set to acquire Turin-based commercial vehicle giant Iveco in a deal valued at USD 4.34 billion (approximately Rs 38,000 crore). If completed, this will be the second-largest acquisition by the Tata Group overall, and its largest acquisition in the automotive sector, surpassing the USD 2.3 billion deal for Jaguar Land Rover. The 50-year-old company, owned by the Agnelli family, has agreed to sell the commercial vehicle business to the Indian automaker, after its separation from the defence business, which is set to be sold as a separate unit.
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Tata Motors will pay 14 euros for each share of the commercial vehicle business, which represents an adjusted value, after approximating the share value of the defence business at 5.5-6.0 euros per share. The deal is subject to a minimum acceptance level of at least 95 per cent of Iveco’s common shares, which will be reduced to 80 per cent if Iveco adopts the post-offer demerger and liquidation resolutions at the company’s general meeting.
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The statement says that the offer aims at Iveco becoming a wholly-owned subsidiary of Tata Motors
Exor, which owns approximately 27.06 per cent of Iveco’s common shares and 43.11 per cent of all voting rights, has agreed to tender its interests, while the 1.39 per cent held by board members will also be given up. The statement says that the offer aims at Iveco becoming a wholly-owned subsidiary of Tata Motors, after the delisting of the Group from Euronext Milan. The deal is expected to be concluded by the first half of 2026 and is subject to the separation of the company’s defence business and the obtaining of the required investments, among other factors.
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If the deal takes place, the combined revenues of Iveco and the commercial vehicle business of Tata Motors will amount to € 22 billion, with the sale of over 5.4 lakh units a year. The revenues will be split across three main markets- Europe (50 per cent), India (35 per cent) and the Americas (15 per cent).
