Tata Motors has announced that it would be acquiring Iveco Group N.V. for approximately US $ 4.35 billion. According to a press note, Iveco, a European leader in commercial vehicles and mobility, and Tata Motors have announced that they have reached an agreement to create a commercial vehicles group with the reach, product portfolio and industrial capability to be a global champion in this dynamic sector.
The envisaged recommended voluntary tender offer will be made by TML CV Holdings PTE LTD or a new limited liability company to be incorporated under Dutch law, which will be wholly owned, directly or indirectly, by Tata Motors. The completion of the offer is conditional, inter alia, on the separation of Iveco's defence business and, as such, the public offer is for all issued common shares of Iveco Group after the separation of that business, at a price of EUR 14.1 (cum dividend, excluding any dividend distributed in relation to the sale of the defence business) per share in cash. The offer represents a total consideration of approximately EUR 3.8 billion (approx. US $ 4.35 billion) for Iveco Group, excluding Iveco's defence business and the net proceeds from the defence business separation.
Iveco which was at one point part of CNH which in turn was part of the Fiat Group, are all different entities. While CNH divested itself from the Fiat Group, Iveco separated from the CNH Group. Iveco is now part of the Iveco Group N.V., which was formed after a demerger from CNH Industrial on January 1, 2022.
It may be recalled that on February 14, 2007, Iveco, which was then part of the Fiat Group, and Tata Motors had announced the signing of a Memorandum of Understanding (MoU) to analyse the feasibility of cooperation, across markets, in the area of Commercial Vehicles. The Tata Motors and Iveco strategic alliance did not fully materialise as a joint venture or significant operational collaboration.
The Iveco Group Board of Directors (the “Iveco Board”) unanimously and fully supported the Tata Motors offer and recommended the offer for acceptance by the shareholders of Iveco . Exor N.V., Iveco Group’s largest shareholder, has irrevocably committed to support the offer and tender its shareholding representing approximately 27.06% of Iveco Group's common shares and 43.11% of all voting rights .
The Offer is subject to obtaining the required merger control, foreign direct investment, EU Foreign Subsidies Regulation and financial regulatory clearances, and is expected to complete in the first half of 2026.
The sale of the company’s defence business is envisaged to close in Q1 2026 and ultimately no later than 31st March 2026. The Tata Motors acquisition offer would bring together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over 540,000 units per year. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of.€22bn (INR 2,20,000Cr+) split across Europe (50%), India (35%) and the Americas (15%) with attractive positions in emerging markets in Asia and Africa.
The combined group will be better positioned to invest in and deliver innovative, sustainable mobility solutions by leveraging both supplier networks to serve customers globally. It will also unlock superior growth opportunities and create significant value for all stakeholders in a dynamic marketplace. By preserving each group’s industrial footprint and employee communities, this complementarity is also expected to foster a smooth and successful integration process. Furthermore, in the context of the ongoing, rapid transformation of the global commercial vehicle industry, the strategic combination of the commercial vehicle business of Tata Motors and Iveco Group will transform both entities, creating a robust platform with a global customer base and geographically diverse footprint, the press release said.
The new company will be able to drive better operating leverage by spreading its capital investments over larger volumes, generating important efficiencies and reducing the cash flow volatility inherent in the commercial vehicles sector. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced.
Natarajan Chandrasekaran, Chairman of Tata Motors said, “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe. The combined group's complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.” Suzanne Heywood, Chair of Iveco Group noted, "We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility. Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole.”
Girish Wagh, Executive Director of Tata Motors added that "This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations we are unlocking new avenues for operational excellence, product innovation and customer-centric solutions. This partnership not only enhances our ability to serve diverse mobility needs across markets, but also reinforces our commitment to delivering sustainable transport solutions that are aligned with global megatrends. Together, we are shaping a resilient and agile enterprise, equipped to lead in times of transformative change."
Olof Persson, CEO of Iveco Group said, “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. This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”
Iveco Group N.V. is the home of unique people and brands. The seven brands are each a major force in its specific business: Iveco, a pioneering commercial vehicles brand that designs, manufactures, and markets heavy, medium, and light-duty trucks; FPT Industrial, a global leader in a vast array of advanced powertrain technologies in the agriculture, construction, marine, power generation, and commercial vehicles sectors; Iveco Bus and Heuliez, mass-transit and premium bus and coach brands; IDV, for highly specialised defence and civil protection equipment; Astra, a leader in large-scale heavy-duty quarry and construction vehicles; and Iveco Capital, the financing arm which supports them all. Iveco Group employs 36,000 people around the world and has 19 industrial sites and 31 R&D centres.