New Delhi: Tata Motors Limited has announced plans to acquire Iveco Group N.V., a European leader in commercial vehicles and mobility, through an all-cash voluntary tender offer valued at approximately 3.8 billion euros. The acquisition is subject to regulatory approvals and the separation of Iveco’s defense business. The merger aims to create a strong 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 the issued ordinary shares of Iveco Group (excluding its defense division), for 14.1 euros per share in cash. The transaction is conditional on the completion of the separation of Iveco’s defense business, which is expected by March 31, 2026.
The deal represents a premium of 22-25 per cent to Iveco’s average share price during the three months ending July 17, 2025. Including the estimated 5.5-6.0 euro per share extraordinary dividend from the sale of the defence business, this premium could rise to 34-41 per cent. The merger will bring together Tata Motors’ commercial vehicle division and Iveco’s operations, generating annual sales of around 540,000 units and revenues of 22 billion euros (Rs 2.2 lakh crore). The revenue base will be geographically diversified across Europe (50 per cent), India (35 per cent) and the US (15 per cent).
Natarajan Chandrasekaran, Chairman, Tata Motors, said, “This is a logical next step after the split of Tata Motors’ commercial vehicle business.” This will “allow the combined group to compete globally in two strategic domestic markets of India and Europe.” Olof Persson, CEO, Iveco Group, said, “Together with Tata Motors, we are opening up new possibilities to further enhance our industrial capabilities, accelerate innovation in zero-emission transportation 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 receiving legal advice from Goldman Sachs and De Brauw & PedersoliGattai.
