Tata Motors announces euro 3.8 billion acquisition of Iveco Group
Tata Motors Limited has announced plans to acquire Iveco Group N.V., a European leader in commercial vehicles and mobility, in an all-cash voluntary tender offer valued at approximately euro 3.8 billion.
ANI
Jul 31, 2025 10:42 IST
New Delhi [India], July 31 (ANI): Tata Motors Limited has announced plans to acquire Iveco Group N.V., a European leader in commercial vehicles and mobility, in an all-cash voluntary tender offer valued at approximately euro 3.8 billion.
The acquisition is subject to regulatory approvals and the separation of Iveco's defence business. The combination aims to create a formidable 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 issued common shares of Iveco Group (excluding its defence division), offering euro 14.1 per share in cash. This transaction is conditional on the completion of the separation of Iveco's defence business, expected by March 31, 2026.
The deal represents a premium of 22-25 per cent on Iveco's average share price over the three months ending July 17, 2025. Including the estimated euro 5.5-6.0 per share extraordinary dividend from the defence business sale, the premium could rise to 34-41 per cent.
The merger will bring together Tata Motors' commercial vehicle division and Iveco's operations, combining annual sales of approximately 540,000 units and revenue of euro 22 billion (INR 2.2 lakh crore). The revenue base will be geographically diversified across Europe (50 per cent), India (35 per cent), and the Americas (15 per cent).
"This is a logical next step following the demerger of Tata Motors' Commercial Vehicle business," said Natarajan Chandrasekaran, Chairman of Tata Motors. It "will allow the combined group to compete globally with two strategic home markets in India and Europe."
Olof Persson, CEO of Iveco Group, added, "By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, 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 being advised by Goldman Sachs and legal counsel from De Brauw and PedersoliGattai. (ANI)
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