Tata To Acquire Iveco Group In EUR 3.8 Billion Deal

Tata To Acquire Iveco In EUR 3.8 Billion Deal, Will Improve The Brand’s Stock Prices

Tata Motors has announced an agreement to acquire Iveco Group in an all-cash deal worth approximately EUR 3.8 billion. Before finalising the deal, Tata Motors must separate Iveco’s defence business, excluding it from the acquisition. Tata Motors, through a new Dutch entity fully owned by the company, is making the offer.

Negotiations

Iveco’s Board has unanimously supported the offer and recommended shareholder approval at the upcoming extraordinary general meeting. Exor N.V., Iveco’s largest shareholder, has committed to tender its 27.06% stake in support of the acquisition. Tata Motors sets the offer price at EUR 14.1 per share, excluding dividends from the defence business sale.

The deal establishes a global commercial vehicle leader with annual revenues of EUR 22 billion and sales of 540,000 units. The combined business will span Europe, India, and the Americas with complementary portfolios and little market overlap. The companies aim to enhance sustainable mobility and operational scale across regions.

The offer includes two-year non-financial commitments on governance, employee protections, and business continuity. Iveco’s headquarters will remain in Turin, and no job cuts or factory closures are planned. Tata Motors will preserve the existing organisational structure and investments to ensure smooth integration and long-term competitiveness.

Regulatory approvals and completion of the defence business separation by March 31, 2026, are necessary for the transaction. If the sale does not occur, the business will be spun off into a new listed company. Tata Motors expects to close the offer in the first half of 2026, following all approvals.

After the acquisition, Tata plans to delist Iveco from Euronext Milan and make it a wholly owned subsidiary. Tata Motors will strengthen capital allocation, reduce volatility, and enable broader innovation in the commercial vehicle sector. Advisors include Goldman Sachs, Morgan Stanley, Clifford Chance, and PwC, among others.

Outlook

Tata Motors and Iveco mark a major milestone with this acquisition, combining their strengths to create a future-ready, global automotive powerhouse. The deal underscores both companies’ commitment to sustainable transport, strategic expansion, and industrial excellence.