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Tata Motors to Acquire Iveco Group in €3.8 Billion Deal, Eyes Global Commercial Vehicle Expansion
Tata Motors and Iveco Group have reached an agreement for Tata Motors to acquire all common shares of Iveco Group, barring its defense division, for €14.1 per share, totaling approximately €3.8 billion. The deal is anticipated to close in the first half of 2026 after separating the defense business. The Iveco Board supports the offer, with Exor N.V. committed to tendering its shares. The merger aims to create a combined annual sale of 540,000 units and generate €22 billion in revenue, enhancing competitive capabilities in global markets.
Keshav Rajput
Updated Jul 31, 2025, 03:54 PM IST
Tata Motors to Acquire Iveco Group in €3.8 Billion Deal, Eyes Global Commercial Vehicle Expansion
Tata Motors and Iveco Group jointly announced an agreement under which Tata Motors will acquire all common shares of Iveco Group, excluding its defence business. The offer, made through a newly incorporated Dutch company fully owned by Tata Motors, is priced at €14.1 per share, resulting in a total transaction value of about €3.8 billion.
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Final closure is targeted for the first half of 2026, following the completion of the defence business separation in Q1 2026. An extraordinary dividend of €5.5–6.0 per share is planned from the proceeds of this divestment.
Offer Backed by Iveco Board and Largest Shareholder
The Board of Directors at Iveco Group has unanimously recommended that shareholders accept the offer. Exor N.V., which owns 27.06% of Iveco's common shares and holds 43.11% of voting rights, has committed to tender its shares. Tata Motors has secured full financing for the offer, increasing the likelihood of deal completion.
Expected Synergies from the Combined Group
The merger would bring together complementary product portfolios and market reach, with minimal overlap. Combined, the two businesses are expected to sell around 540,000 units annually and generate revenues of about €22 billion. Revenue distribution is projected to span Europe (50%), India (35%), and the Americas (15%).
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.”
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.”
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