Tata Motors announces acquisition of Iveco Group for €3,8 billion

Tata Motors announced on Wednesday (30) the acquisition of Iveco Group, a European commercial vehicle manufacturer. The proposed purchase, valued at €3,8 billion, will be made entirely in cash, through a voluntary public offering. The agreement provides for the separation of Iveco's defense division before the deal is completed.

Iveco's board of directors unanimously approved the offer and recommends its acceptance to shareholders. The proposal includes the payment of €14,10 per Iveco share, which could be combined with an extraordinary dividend of between €5,5 and €6 per share, linked to the sale of the defense division. Exor, Iveco's largest shareholder, has committed to accepting the offer, which involves acquiring approximately 27% of the common shares and 43% of the voting rights.

The merger of the commercial operations of Tata Motors and Iveco will create a group with combined revenues of approximately €22 billion and annual sales of approximately 540 vehicles. The new group will have a balanced presence between Europe (50%), India (35%), and the Americas (15%), with a strong presence in emerging markets in Asia and Africa.

The companies state that the complementarity of their portfolios and the absence of industrial and geographic overlap will facilitate the integration. Iveco's headquarters will remain in Turin, Italy, and there are no plans to close plants or reduce headcount. The new company will maintain Iveco's corporate identity, brands, and organizational structure.

The transaction is still subject to regulatory approval and the completion of the sale or spin-off of Iveco's defense division, which is expected by March 31, 2026. The purchase is expected to be completed in the second quarter of 2026. Upon closing, Iveco will be delisted from the Euronext Milan stock exchange and will become a wholly owned subsidiary of Tata Motors.

Tata Motors views the acquisition as a strategic step following the spin-off of its commercial vehicles division, announced in August 2024.