Iveco acquisition on track; Tata Motors expects $4.45 billion deal closure in Q1 FY27

Iveco

• Tata Motors says deal on track on committed timeline
• Iveco in the process to sell its Defence business before March'26 end
• It is the largest outbound deal by Tata Motors

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Tata Motors’ largest outbound acquisition—the $4.45 billion buyout of Italian commercial vehicle major Iveco Group—is expected to be completed in the first quarter of FY27, according to a senior company executive.

Speaking to Moneycontrol on the sidelines of Tata Motors’ December quarter earnings announcement, GV Ramanan, chief financial officer of Tata Motors, said the deal is progressing largely as planned, with regulatory approvals nearing completion.

“We are still in the process of getting approvals from various agencies. Most of the approvals have been secured barring a couple of countries,” Ramanan said.

In July 2025, Tata Motors, through its commercial vehicle business, announced the acquisition of Iveco Group, the world’s fifth-largest commercial vehicle manufacturer. The transaction marked the company’s biggest overseas deal to date.

“We expect all the approvals to be in place by around mid-March, which was the earlier timeline that we were talking about. Our earlier timeline of completing the acquisition was Q1 FY27, and that is on track,” Ramanan added.

The company also said the separation of Iveco’s defence business—excluded from the Tata Motors deal—is progressing as scheduled. “From the Iveco side, this has been confirmed very clearly, that the committed timeline will be met,” Ramanan said.

Iveco informed shareholders on January 23, 2026, that an Extraordinary General Meeting to authorise the distribution of the net proceeds from the sale of its defence business to Leonardo S.p.A. is expected to be held in the second half of March 2026.

The company had earlier stated in July 2025 that if the sale to Leonardo is not completed on or before March 31, 2026, it would initiate steps to spin off the defence business through a statutory demerger. Under that plan, the defence unit would be transferred to a newly incorporated entity under Dutch law.