Tata Group to Acquire Iveco’s Italian truck business for $4.4 billion

Tata Motors has agreed to acquire Turin, Italy-based commercial vehicle brand, Iveco for $4.4 billion (Euros 3.8 billion/Rs38,240 crore), as part of its strategy of expanding global commercial vehicle business.

As per the agreement, Tata Motors will acquire all of the Dutch automaker’s operations in Italy, except for its defence business, in what is set to be the Indian automaker's biggest overseas acquisition.

Tata Motors will make the acquisition from Iveco’s principal shareholder, the Agnelli family, through a voluntary tender offer by TML CV Holdings Pte Ltd or a new limited liability company to be incorporated under Dutch law. The transaction will be at a price of Euro 14.1 per share, to be pad in cash.

The share price is inclusive of dividend and exclusive of any dividend distributed in relation to the sale of the defence business. The completion of the transaction is conditional on the separation of Iveco's defence business anf the offer is for all issued common shares of Iveco Group after the separation of the defence business.

The board of directors of Iveco Group has unanimously recommended the offer for acceptance by the company’s shareholders and the Agnelli family that holds 27.06 per cent of Iveco’s common stock and 43,11 per cent of the voting rights, has irrevocably committed to support the offer.

Tata Group has committed financing for the entire offer price and to supporting and accelerating Iveco’s existing strategy and to ensure its long term interests. 

The deal is expected to be completed by April 2026, subject to necessary regulatory and customary clearances, including merger control, foreign direct investment, EU Foreign Subsidies Regulations and financial regulations.

The combination of the two businesses with product complimenarty and manufacturing prowess will create a Euro 22 billion (Rs2,20,000 crore) global leader in commercial vehicles, with exclusive geographic footprints across the EU, India and the Americas, ensuring long term sustainability. 

Following the acquisition, Iveco Group and its subsidiaries will continue to have its own operating and managing structure, and the transaction eill not have any impact on Tveco’s operations, including production sites and existing customer contracts.