Tata Motors To Acquire Iveco’s Commercial Vehicles Business for €3.8 Billion

Mumbai, July 31, 2025 – Tata Motors Limited (NSE: TATAMOTORS)  will acquire 100% stake in  commercial vehicles business Iveco from the current promoters, the Angelli Family. The price of the acquisition is $4.4 billion (Euro 3.8 billion) in all-cash.

Transaction Overview

• The deal is worth €3.8 billion.
• Tata will acquire all 271.2 million shares, which means a 100% stake in the business.
• The offer price is set at €14.1 per share, not including a special dividend from the defence unit sale.
• For the deal to go through, at least 80% of Iveco shareholders must agree to sell.
• The deal is expected to be completed by Q2 of 2026.
• It still needs approvals from regulators covering mergers, foreign investments, EU subsidy rules, and financial bodies.

Strategic Rationale Behind the Acquisition

According to Tata Motors, the acquisition will:

• Expand capabilities: Access to future-ready technologies, talent, and innovation.
• Create a global player: A consolidated commercial vehicle business with enhanced geographic and portfolio reach.
• Leverage strengths: Combining complementary product lines and regional strengths of both entities.
• Diversify portfolio: Reduces business cyclicality by widening market exposure across Europe, India, and the Americas.

The combined entity is expected to generate €22 billion+ (₹2.2 lakh crore) in revenues annually, with a global volume of over 540,000 units, and presence in 50+ countries, including India, Europe, and the Americas.

Shareholding & Support

• Exor N.V., the largest shareholder in Iveco, owns 27.06% of common shares and holds 43.11% of voting rights.
• Iveco’s board members, who together hold 1.39% of shares, have also agreed to vote in favour of the acquisition at the upcoming Extraordinary General Meeting (EGM).

The Iveco Board has unanimously recommended the offer, supported by a fairness opinion from Goldman Sachs.

Offer Conditions

• Sale/spin-off of Iveco’s defence business by March 31, 2026.
• Merger clearances from EU, financial regulators, and FDI bodies.
• Minimum acceptance level of 80%.
• Post-acquisition, Iveco will be delisted from Euronext Milan.

Non-Financial Covenants (2-Year Period)

• Iveco HQ will remain in Turin, Italy.
• No workforce reduction or plant closures due to the merger.
• Preservation of brand identity, governance structure, and CAPEX commitments.
• Enhanced ESG commitment and employee career progression.

Management Commentary

Natarajan Chandrasekaran, Chairman, Tata Motors: “This is a logical next step post our commercial vehicle demerger, enabling us to build a global mobility champion anchored in India and Europe.”

Girish Wagh, Executive Director, Tata Motors: “This combination unlocks new avenues for operational excellence and product innovation, reinforcing our vision for a sustainable transport ecosystem.”

Olof Persson, CEO, Iveco Group: “Together with Tata Motors, we are poised to accelerate innovation and serve our customers globally with a broader product portfolio.”

Financial Snapshot of Iveco Group (incl. defence)

• In CY2024, Iveco Group reported revenue of €15.2 billion.
• In CY2023, the revenue stood higher at €15.9 billion.
• In CY2022, the company had generated €14.3 billion in revenue.

The transaction was advised by Morgan Stanley (Tata Motors) and Goldman Sachs (Iveco), with legal and tax advisory from Clifford Chance, PwC, De Brauw, and others.

Tata Motors Stock Performance

Tata Motors shares are trading at ₹665.80, which is a 0.40% dip on July 31, 2025, at 10:44 AM IST. Tata Motors shares have gained 42% in the last year, 11% in the year-to-date, and 3.23% in the previous month.

Tata Motors shares opened at ₹659.85 on Wednesday, hovering between an intraday high of ₹667.45 and a low of ₹652.35. The stock is trading well below its 52-week high of ₹1,176 but remains above the 52-week low of ₹535.75. The company has a market capitalization of ₹2.45 lakh crore.

About Tata Motors

Tata Motors Limited is a $44 billion global auto manufacturer and India’s leader in commercial vehicles. With strong innovation in e-mobility and strategic global operations, it is actively transforming future mobility solutions.

About Iveco Group

Iveco Group N.V. is a global player in commercial and specialty vehicles, powertrains, and bus solutions. With 36,000 employees and 19 plants across continents, it owns brands like IVECO, FPT Industrial, HEULIEZ, and IVECO CAPITAL.

REF: https://nsearchives.nseindia.com/corporate/TATAMOTORSSJS_30072025220400_NSEBSELETTER_ACQUI.pdf

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