Tata Motors takes over Iveco Group for €3.8 billion

Tata Motors and Iveco Group have announced an agreement that will lead to the creation of a global commercial vehicle manufacturer, with transaction to be concluded by Q2 2026.

The transaction, valued at approximately EUR 3.8 billion, involves a voluntary tender offer by Tata Motors for all common shares of Iveco Group (parent company of Iveco Bus and Heuliez, as well as of Iveco and FPT Industrial), excluding its defence business that has been sold to Leonardo. The completion of the offer is subject to the separation of that business. The transaction was anticipated on July 19th, followed by an official statement issued by Iveco Group on July 29th confirming the negotiation underway.

Tata Motors and Iveco Group: a €22 billion group

With a press statement shared in the late afternoon of July 30th, the two companies says “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 merger between Tata Motors and Iveco will create a group with sales exceeding 540,000 units per year, with combined revenues of approximately €22 billion, divided between Europe (approximately 50%), India (approximately 35%) and the Americas (approximately 15%), with attractive positions in emerging markets in Asia and Africa. Q2 results of Iveco Group were released today: consolidated revenues amount to €3,781 million compared to €3,919 million in Q2 2024.

The Economic Times underlines that “This will be the largest acquisition by the Tata Group in the automotive space, almost twice the size of its $2.3 billion Jaguar Land Rover purchase in 2008”.

So reads the press note: “The envisaged recommended voluntary tender offer (the “Offer”) will be made by TML CV Holdings PTE LTD or a new limited liability company to be incorporated under Dutch law (the “Offeror”), 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 Price”). 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”.

Tata Motors, based in Mumbai, is now a multinational automotive company, with activities ranging from the design to the production and sale of cars, commercial vehicles, buses, heavy trucks and electric vehicles. In this regard, Tata Motors is the leading OEM in India for sales of battery-powered vehicles, with a market share of around 70%.

Listed on both the Bombay Stock Exchange and Wall Street, Tata Motors is one of the most strategic companies in the entire Indian manufacturing sector. In 2023, just to give you an idea, it sold over 1 million vehicles globally. The company has factories in India, the United Kingdom, South Africa and Thailand, with an extensive global distribution and service network.

Tata – Iveco: the statements

Natarajan Chandrasekaran, Chairman of Tata Motors: “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: “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: “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: “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.”