Tata Motors Limited has declared its plans to acquire Iveco Group N.V. The company is a European leader in commercial vehicles and mobility segment. The value of this offer is around 3.8 billion in an all-cash voluntary tender.
Deal Hinges on Defence Business Split
However, the acquisition is subject to regulatory approvals and the separation of Iveco’s defence business. The combination aims to create a formidable global player in the commercial vehicle sector with complementary capabilities, diversified markets, and a shared vision for sustainable growth.
Under the proposed deal, Tata Motors will acquire all issued common shares of Iveco Group (excluding its defence division), offering euro 14.1 per share in cash. This transaction is conditional on the completion of the separation of Iveco’s defence business, expected by March 31, 2026.
High Premium, Strong Global Synergies Expected
The deal represents a premium of 22-25 per cent on Iveco’s average share price over the three months ending July 17, 2025. Including the estimated euro 5.5-6.0 per share extraordinary dividend from the defence business sale, the premium could rise to 34-41 per cent.
The merger will bring together Tata Motors’ commercial vehicle division and Iveco’s operations, combining annual sales of approximately 540,000 units and revenue of euro 22 billion (INR 2.2 lakh crore). The revenue base will be geographically diversified across Europe (50 per cent), India (35 per cent), and the Americas (15 per cent).
Strategic Merger Backed by Complete Financing
“This is a logical next step following the demerger of Tata Motors’ Commercial Vehicle business,” said Natarajan Chandrasekaran, Chairman of Tata Motors. It “will allow the combined group to compete globally with two strategic home markets in India and Europe.”
Olof Persson, CEO of Iveco Group, added, “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets.”
Tata Motors has secured full financing for the acquisition from a consortium led by Morgan Stanley and MUFG Bank. Clifford Chance, PwC, and Kearney are among the advisors supporting Tata Motors. Iveco Group is being advised by Goldman Sachs and legal counsel from De Brauw and PedersoliGattai.
(Inputs from ANI)
Also Read: Tata Punch Crosses 6 Lakh Sales: Do You See Why It’s Being Called “India Ki SUV”?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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