Tata Motors Ltd. has signed an agreement to acquire Iveco Group N.V. a European leader in commercial vehicles and mobility, through a subsidiary for ₹38,000 crore ($4.5 billion).
Iveco Group Board has recommended Tata Motors’ all-cash voluntary tender offer for Iveco Group common shares. This call-cash deal will be funded through a bridge loan to be repaid in four years and Tata Motors has announced to raise €I billion in equity to fund this acquisition, chief financial officer P.B. Balaji told journalists.
This will be Tata Motors’ biggest acquisition, once complete. In 2008 the company had acquired Jaguar Land Rover for $2.3 billion. Mr. Balaji said this Iveco deal would be one of the top acquisitions of the Tata Group which had earlier acquired Corus and Tetley besides JLR and Daewoo Commercial Vehicles.
The completion of the offer is conditional on the separation of Iveco’s defence business.
Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenue of ₹2,20,000 crore split across Europe, India and the Americas with attractive positions in emerging markets in Asia and Africa.
Natarajan Chandrasekaran, Chairman, Tata Motors in a statement said, “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe.”
“The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months,” he said.
Suzanne Heywood, Chair of Iveco Group said this this strategically significant combination brings together two businesses with a shared vision for sustainable mobility.
“Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole,” he added.
Girish Wagh, Executive Director of Tata Motors said, “This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. Together, we are shaping a resilient and agile enterprise, equipped to lead in times of transformative change.”
Tata Motors has offered to acquire 100% of Iveco’s common shares with a subsequent delisting of Iveco Group from Euronext Milan.
Tata Motors will be able to achieve full ownership of Iveco through a pre-agreed transaction upon reaching 80% in the Offer.
Upon successful completion of the offer, it is envisaged that two members of the Iveco Board will serve as independent board members and will monitor compliance with, amongst other things, the Non-Financial Covenants (NFC).
The Iveco Board will continue to drive decisions for long-term growth and maintaining the competitiveness of the business. Tata Motors will remain committed to respecting and maintaining Iveco Group’s corporate identity, integrity, core values, and culture as well as Iveco’s key brands, trademarks, and logos.
Iveco Group’s headquarters will remain in Turin, Italy. Tata Motors will be committed to the long-term development of the combined group and will not implement any material restructurings or close any plants or factories owned or used by Iveco Group as a direct consequence of the combination and, in any case, during the period of the NFC.
It will respect the existing rights and benefits of the employees of Iveco Group, including those outlined in the relevant employment and pension agreements and plans as well as existing arrangements with employee representative bodies.
Iveco Group, together with its subsidiaries, will continue to have its own operating and reporting structure, with the Iveco Board managing the Iveco Group and its businesses. The Board of Iveco will continue to drive decisions for long-term growth and the competitiveness of the business.
The deal is expected to close in Q2 2026. With Iveco in its fold, Tata Motors will now be a global commercial vehicles player and compete with Volvo and Daimler.
Published – July 31, 2025 08:31 pm IST