Tata Motors has announced its intent to acquire Iveco Group through an all-cash voluntary tender offer valued at approximately € 3.8 billion. The proposed acquisition will create a leading global commercial vehicle player, combining the strengths of Tata Motors’ commercial vehicle business and the Europe-based Iveco Group.
The offer, made through TML CV Holdings PTE LTD (or a new Dutch entity), is conditional upon the separation of Iveco’s defence business, which is expected to conclude by March 2026. Iveco’s Board has unanimously recommended the offer, which is backed by its largest shareholder, Exor N.V., holding 27.06 per cent of the company’s common shares.
The combination will result in an entity with annual sales of around 540,000 vehicles and combined revenues of nearly € 22 billion, diversified across Europe (50 per cent), India (35 per cent), and the Americas (15 per cent). The companies cite minimal overlap in product portfolios and geographies, promising a smooth integration process and significant synergies.
Natarajan Chandrasekaran, Chairman, 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, Iveco Group, remarked, “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 acquisition includes a set of non-financial covenants to ensure continuity of Iveco’s brand identity, governance, and employee protections for at least two years post-settlement. Iveco’s headquarters will remain in Turin, Italy, and no factory closures or direct workforce reductions are expected as a result of the transaction.
Girish Wagh, Executive Director, Tata Motors, noted, “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, 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. 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.”
The transaction is subject to regulatory approvals, shareholder consent, and the successful separation of Iveco’s defence operations. Upon completion, Tata Motors aims to delist Iveco from Euronext Milan and operate it as a wholly owned subsidiary.