Homegrown auto giant Tata Motors today announced that it will acquire the commercial vehicle (CV) business of Italy's Iveco Group through an all-cash voluntary tender offer of approximately 3.8 billion euros (4.4 billion dollars or Rs 38,197.32 crore). The deal does not include the defence part of the business.
A global auto player, Iveco designs, produces and sells CVs and defence vehicles, among others. The transaction intends to acquire the non-defence business comprising trucks, buses, powertrains and financial services.
According to a regulatory filing, the voluntary tender offer will be made by TML CV Holdings Pte Ltd or a new limited liability company to be incorporated under Dutch law, 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 filing said.
"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," it added.
Separately, Exor, which is Iveco's largest shareholder with approximately 27.06% of its common shares and 43.11% of all voting rights, today executed an irrevocable undertaking to support the offer and tender its shareholding.
The transaction is expected to close by April 2026, subject to all necessary formalities and regulatory clearances.
The acquisition of Iveco will support Tata's CV business by further strengthening its portfolio by way of securing access to emerging technologies, creating a platform to compete on a global basis, and leveraging each other's strengths by portfolio and geographical complementarity.
"This is a logical next step following the demerger of the Tata Motors CV 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," said N Chandrasekaran, Chairman, Tata Motors.
"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," said Suzanne Heywood, Chair, Iveco Group.
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