Tata Motors is acquiring a 100% stake in Italy’s commercial vehicle (CV) major Iveco Group. The offer to acquire Iveco 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,” said Tata Motors in an exchange filing.
“The offer represents a total consideration of approximately EUR 3.8 billion for Iveco Group, excluding Iveco's defence business and the net proceeds from the defence business separation,” it added.
Tata Motors added that the 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 5,40,000 units per year.
Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of EUR 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.
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, said, "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."
The sale of the companies of the defence business is envisaged to close in Q1 of FY2026 and ultimately no later than 31st March 2026.
Exor N.V., Iveco Group's largest shareholder, has 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.