Tata Motors Acquires Iveco’s CV Business in Landmark €3.8 Billion Deal

Tata Motors acquires IVECO, and the deal includes the Italian Group’s commercial vehicle business, including trucks, buses, powertrain, and more.

Tata Motors has announced a landmark €3.8 billion (₹38,197 crore) acquisition of the commercial vehicle (CV) business of Italy’s Iveco Group, marking a strategic leap in the company’s global ambitions. The deal excludes Iveco’s defence business and is expected to close by April 2026, pending regulatory approvals.

The acquisition, via an all-cash voluntary tender offer through a new Dutch-incorporated entity under Tata Motors, aims to bolster Tata’s global footprint in CVs, enhance its access to clean powertrain technologies, and establish a dual home-market presence in India and Europe.

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Tata Motors Acquires Iveco: Key Highlights of the Acquisition

• Transaction Value: €3.8 billion (approx. ₹38,197 crore)
• Business Scope: Trucks, buses, powertrains, and financial services (excluding defence segment)
• Buyer Entity: TML CV Holdings Pte Ltd or new Dutch LLC fully owned by Tata Motors
• Strategic Shareholder Backing: EXOR, Iveco’s largest shareholder with 27.06% stake, has pledged full support
• Closing Timeline: Expected by April 2026

Tata Motors Acquires Iveco: Strategic Rationale and Global Implications

Tata Motors views this acquisition as a natural progression post its CV demerger, aligning with its broader vision of becoming a global CV powerhouse. The deal is designed to:

• Expand Global Market Access: Iveco’s strong European footprint complements Tata’s dominance in India, creating two strategic home markets.
• Leverage Complementary Portfolios: Combining Iveco’s clean powertrain innovations and Tata’s scale can fast-track product development and electrification.
• Strengthen Tech Capabilities: Tata Motors gains access to advanced emission-compliant engines, alternative fuel drivetrains, and EU-focused R&D.
• Enhance Employment Security and Industrial Footprint: Both companies affirm a commitment to maintaining and growing operations and workforce.

Global and Government Support

The acquisition has received strong political and institutional backing:

• Italian Government Support: Italy has publicly endorsed the deal, welcoming Tata’s commitment to preserving local jobs and manufacturing capabilities.
• EXOR’s Endorsement: The holding company’s irrevocable commitment lends weight to the deal’s credibility and likelihood of timely closure.

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Official Statements

N. Chandrasekaran, Chairman of Tata Motors:
“This is a logical next step following the demerger of the Tata Motors CV business. The complementary portfolios and geographical presence allow us to compete globally with enhanced investment ability.”

Suzanne Heywood, Chair of Iveco Group:
“This strategically significant combination supports shared goals in sustainable mobility and enhances employment prospects and the industrial future of Iveco Group.”