Tata Motors to Finalize Rs 38,000 Crore Global Takeover of Iveco

Tata Motors Limited (TML) is set to make one of its largest overseas acquisitions by proposing to take full control of European commercial vehicle manufacturer Iveco Group N.V., excluding its defence business. The acquisition will be executed through a voluntary public cash tender offer valued at approximately €3.8 billion (around ₹38,000 crore or US$4.35 billion). This deal surpasses Tata Motors’ previous largest acquisition, the $2.3 billion all-cash purchase of Jaguar Land Rover from Ford in 2008.

The tender offer will be made by TML CV Holdings Pte Ltd or a newly incorporated limited liability company under Dutch law, which will be wholly owned, directly or indirectly, by Tata Motors. Iveco, headquartered in Turin, Italy, is part of Iveco Group N.V., incorporated in Amsterdam. Following the announcement, Tata Motors shares fell by 3.47% to ₹668.40 on the Bombay Stock Exchange (BSE).

On the day of the announcement, Tata Motors and Iveco revealed they had reached an agreement to create a combined commercial vehicle group with enhanced product portfolios, global reach, and industrial capabilities. The aim is to become a global champion in the dynamic commercial vehicle sector.

The completion of the acquisition depends on the successful separation of Iveco’s defence business. The public offer pertains only to the common shares of Iveco Group after the defence business is separated. The offer price is set at €14.1 per share, inclusive of dividends except those related to the defence business sale. The total consideration of approximately €3.8 billion excludes the defence business and the net proceeds from its separation.

Post-acquisition, the combined commercial vehicle operations of Tata Motors and Iveco will generate combined revenues of about €22 billion (approximately ₹2,20,000 crore). Their market presence will be split across Europe (50%), India (35%), and the Americas (15%), with expanding footprints in emerging markets across Asia and Africa.

Natarajan Chandrasekaran, Chairman of Tata Motors, described the acquisition as a logical step following the recent demerger of Tata Motors’ commercial vehicle business. He emphasized that the combined group would be positioned to compete globally, leveraging two strategic home markets in India and Europe. Chandrasekaran highlighted the complementary nature of the businesses and the enhanced reach, which would empower the group to invest more boldly and accelerate growth. He expressed optimism about securing regulatory approvals and completing the transaction in the coming months.

Suzanne Heywood, Chair of Iveco Group, called the deal a strategically significant combination of two businesses united by a shared vision for sustainable mobility. She noted that the combination would enhance employment security and preserve Iveco’s industrial footprint.

Exor, Iveco’s largest shareholder holding around 27.06% of common shares and 43.11% of voting rights, has pledged irrevocable support for the tender offer and committed to voting in favor of the resolutions at the Extraordinary General Meeting (EGM) related to the offer.

Iveco was formed following a demerger from CNH Industrial, which separated commercial and specialty vehicles, powertrain, and financial services businesses. The merged entity aims to leverage the strengths of both supplier networks to deliver innovative, sustainable mobility solutions globally. Tata Motors anticipates that the combined group will unlock superior growth opportunities and generate significant value for all stakeholders within a competitive and evolving market.

Iveco specializes in designing, manufacturing, and marketing heavy, medium, and light-duty trucks. The company employs about 36,000 people worldwide, operates 19 industrial sites, and maintains 31 research and development centers, underscoring its global industrial footprint and commitment to innovation.

In summary, this acquisition marks a major strategic milestone for Tata Motors, bolstering its global commercial vehicle portfolio and enhancing its ability to compete as a leader in sustainable mobility on the world stage.