Tata Motors has announced it will acquire Iveco Group in a deal valued at approximately €3.8 billion. The agreement will see Tata Motors’ TML CV Holdings make an all-cash voluntary tender offer for Iveco’s common shares at €14.1 per share, excluding its defence business. Completion is expected in the first half of 2026, following the separation and sale of Iveco’s defence unit which is expected to close by 31 March 2026.
The proposed acquisition brings together Tata Motors’ commercial vehicle business with Iveco’s well-established European operations. With a combined annual sales volume of around 540,000 units and revenues estimated at €22 billion, the merger will create a globally diversified entity with a strong presence across Europe, India and the Americas. The Iveco Group Board has unanimously supported the deal, and its largest shareholder, Exor N.V., has agreed to tender its 27.06 percent stake.
Tata Motors Chairman Natarajan Chandrasekaran said the acquisition was a logical step following the demerger of the company’s commercial vehicle division. He highlighted that the combined group would benefit from two strategic home markets in India and Europe, enhanced product innovation capability and greater operational leverage. Iveco Group Chair Suzanne Heywood added that the agreement would preserve jobs, maintain the company’s industrial footprint and accelerate its vision for sustainable mobility.
The acquisition is expected to allow both companies to share supplier networks, invest in new mobility solutions and expand into emerging markets in Asia and Africa. Tata Motors has committed to maintaining Iveco’s headquarters in Turin and to retaining its brands and core identity. No plant closures or workforce reductions are envisaged as a direct consequence of the deal.
Regulatory approvals from various merger control and foreign investment authorities will be required before the transaction can close. Once complete, Iveco will be delisted from Euronext Milan and operate as a wholly owned subsidiary of Tata Motors.
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