Tata Motors on Wednesday said it will acquire Italian commercial vehicle maker Iveco Group, excluding its defence business, for €3.8 billion (nearly ₹38,240 crore) in a deal which is set to be the Indian auto maker’s biggest buyout.
In the automotive space, the company’s largest acquisition to date is its buyout of British brand Jaguar Land Rover for $2.3 billion in 2008.
The executive committee of the company’s board has approved the acquisition of 100 per cent common shares of Iveco Group NV, through an all-cash voluntary tender offer (excluding defence business), subject to all regulatory, statutory and all other necessary approvals, the Mumbai-based auto major said in a regulatory statement.
Tata Motors and Iveco group said 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 transaction seeks to acquire 271,215,400 common shares through a voluntary tender offer, which is subject to a minimum acceptance level of 80 per cent of the shares tendered, it added. A cash consideration of €14.1 per tendered share is proposed for Iveco Group N.V. (excluding the defence business), the company stated.
The transaction is expected to close by April 2026, subject to all necessary formalities and regulatory clearances, the company stated.
Commenting on the transaction, Tata Motors chairman Natarajan Chandrasekaran 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.”
Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of around €22 billion (over ₹2,20,000 crore) split across Europe (50 per cent), India (35 per cent) and the Americas (15 per cent) with attractive positions in emerging markets in Asia and Africa, the filing said.
Tata Motors’ acquisition of Iveco Group is the second biggest acquisition of the Tata Group after the $12 billion takeover of Anglo-Dutch giant Corus Group Plc in 2007.
