Tata Motors announced that it had agreed to buy Italian truck maker Iveco Group for 3.8 billion euros ($4.36 billion), following the Italian truckmaker's separate agreement to sell its defence business to Leonardo. As part of the agreement, Tata Motors will make an all-cash tender offer for Iveco's shares at 14.1 euros per share, subject to the defence business sale. The Tata Group automaker announced an agreement with Iveco Group to establish a commercial vehicles group, which will support the Mumbai-based company's commercial vehicle business.
Key Highlights
- Tata Motors agrees to acquire Iveco’s commercial vehicle business for €3.8 billion ($4.36 billion), excluding defense segment.
- Acquisition boosts Tata’s global CV footprint: over 540,000 unit sales and approx €22 billion annual revenues.
According to Tata Motors, the tender offer values Iveco Group at approximately 3.8 billion euros, excluding Iveco's defense business.
In FY24, the Iveco Group reported a turnover of 15,289 million euros (including the defence business). Iveco Group NV designs, manufactures, and sells trucks, commercial vehicles, buses, and defense vehicles through its various subsidiaries. In addition to powertrain applications, the group provides a variety of financial products and services to dealers and customers.
Iveco's defense unit will be separated prior to the acquisition, with a deal value of 3.8 billion euros (equivalent to Rs 34,200 crore). The offer price is Rs 14.1 euros (1,270) per share.
Iveco Group is a European commercial vehicle and mobility manufacturer.
Tata Motors also stated that the acquisition will "bring together two businesses with highly complementary product portfolios and capabilities, and with substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over c. 540k units per year." Iveco and Tata Motors' commercial vehicle business will have combined revenues of approximately 22 billion euros (Rs 2,20,000 crore+), split between Europe (c.50%), India (c.35%), and the Americas (c.15%), with strong positions in emerging markets in Asia and Africa.
The combined group will be better positioned to invest in and deliver innovative, sustainable mobility solutions by leveraging both supplier networks to serve customers worldwide. Tata Motors also stated that it will unlock superior growth opportunities and generate significant value for all stakeholders in a dynamic marketplace.
Tata Motors added that by preserving each group's industrial footprint and employee communities, complementarity is expected to foster a smooth and successful integration process.
Also Read: Tata Motors Plans Fundraising Through Debentures: Impact on Stock Performance
Tata Motors stated that the acquisition is expected to support its Commercial Vehicles business with:
- Expanded capabilities
- The establishment of a global player
- Leveraged strengths
- Diversified portfolio
Meanwhile, the Italian state-backed group Leonardo has agreed to buy Iveco's IDV defense unit, giving the company a 1.7 billion euro enterprise value. This transaction is expected to close in Q1 2026, subject to regulatory approval.
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