Mumbai / Turin – Tata Motors has officially announced its plan to acquire Iveco Group N.V. (excluding its defence business) in an all-cash deal valued at €3.8 billion, solidifying its ambition to become a global leader in the commercial vehicle (CV) industry.
This strategic acquisition will combine Tata Motors’ stronghold in India and emerging markets with Iveco’s dominance in Europe and Latin America, creating a diversified powerhouse with estimated annual sales of 540,000 units and combined revenue exceeding €22 billion (₹2.2 Lakh Crore).
🔑 Deal Highlights:
- 💶 Offer Price: €14.1/share (excluding defence business), with additional €5.5–6.0/share as extraordinary dividend from Iveco’s defence unit sale
- 📈 Total Consideration: €3.8 billion
- 🏢 Acquiring Entity: TML CV Holdings PTE LTD (a Tata Motors-owned Dutch company)
- 🕒 Expected Completion: Q2 2026, subject to regulatory and shareholder approvals
- 📉 Iveco to be Delisted from Euronext Milan after reaching 80–95% shareholder approval
🚚 What This Means for Tata Motors:
- Expanded Global Presence: Strong entry into Europe and LatAm, complementing Tata’s India, SAARC & African markets
- Diversified Portfolio: Trucks, buses, e-powertrains, and captive financial services
- Advanced EV Capabilities: Gains access to IVECO’s hydrogen, electric, and LNG technology stack
- FPT Powertrain Division: Strengthens Tata’s emission-compliant powertrain R&D and manufacturing
- Stronger Financial Position: Free cash flow positive and EPS breakeven expected in just 2 years
🤝 Mutual Board Support
- Iveco’s board has unanimously approved and recommended the offer to shareholders.
- Exor, Iveco’s largest shareholder (27.06% stake, 43.11% voting rights), has given an irrevocable commitment to support the deal.
- The transaction is backed by Morgan Stanley and MUFG with full funding secured.
🌍 Industrial & Employee Commitments
- No plant closures or layoffs planned
- Iveco’s HQ remains in Turin, Italy
- Iveco’s current board structure, brand identity, and strategy will remain intact
- Two independent board members will ensure Tata upholds its non-financial covenants
🧭 The Bigger Picture
This move aligns with Tata Motors’ post-demerger vision and strengthens its leadership in the CV industry amid a global transition to sustainable, zero-emission transport. By combining two complementary portfolios and geographies, the deal will reduce cyclicality, improve resilience, and unlock operational synergies globally.
💬 What They Said
N. Chandrasekaran, Chairman, Tata Motors:
“A logical next step after the Tata Motors CV demerger. We aim to compete globally with two strategic home markets—India and Europe.”
Suzanne Heywood, Chair, Iveco Group:
“This is a significant combination with a shared vision for sustainable mobility and long-term growth.”
Girish Wagh, Executive Director, Tata Motors:
“This leap forward creates new avenues for excellence, innovation, and global mobility solutions.”
Olof Persson, CEO, Iveco Group:
“Joining forces with Tata Motors will accelerate our capabilities in zero-emission transport and innovation.”
📌 Editor’s Take:
From electric trucks and hydrogen buses to FPT powertrains and strong financial discipline, this deal positions Tata Motors at the forefront of next-gen global commercial mobility—a bold, calculated leap toward becoming the “Toyota of Trucks.”
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