Tata Motors Ltd. has officially signed a deal to acquire Italian commercial vehicle giant Iveco Group N.V. for Rs. 38,000 crore (approximately $4.5 billion). The acquisition will be executed through one of Tata’s subsidiaries and represents the automaker’s largest-ever deal.
Iveco Group’s Board backed Tata Motors’ all-cash voluntary tender offer for acquiring its common shares. This acquisition will be financed through a bridge loan, to be repaid within four years. Additionally, Tata Motors plans to raise €1 billion in equity to support the transaction, as revealed by the company’s Chief Financial Officer, P.B. Balaji.
Landmark Acquisition in Tata’s History
Once finalized, the Iveco acquisition will surpass Tata Motors’ landmark 2008 purchase of Jaguar Land Rover, which was valued at $2.3 billion. Balaji also stated that this deal stands among the Tata Group’s most significant takeovers — in the league of earlier acquisitions like Corus, Tetley, JLR, and Daewoo Commercial Vehicles.
The deal’s completion is contingent upon the spin-off of Iveco’s defence business.
Post-acquisition, the combined commercial vehicle operations of Tata Motors and Iveco will generate estimated annual revenues of Rs. 2,20,000 crore, with a strong footprint across India, Europe, the Americas, and high-potential markets in Asia and Africa.
Strategic Alignment and Global Reach
Calling it a milestone move, Tata Motors Chairman Natarajan Chandrasekaran stated, “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.”
He added: “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.”
Suzanne Heywood, Chair of Iveco Group, welcomed the development, saying, “This strategically significant combination 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.”
Adding to the optimism, Tata Motors Executive Director Girish Wagh said: “This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. Together, we are shaping a resilient and agile enterprise, equipped to lead in times of transformative change.”
Governance, Identity, and Employee Commitments
Tata Motors has proposed to acquire 100% of Iveco’s common shares, with plans to delist the company from Euronext Milan. This agreement will allow Tata to attain complete ownership, once it secures 80% of the shares.
Even after the acquisition, Iveco Group will maintain its headquarters in Turin, Italy, and operate with its own governance and reporting structure. The Iveco Board will remain responsible for managing the group and its growth strategy.
Two Iveco Board members will continue as individual directors to ensure transparency. They will oversee adherence to Non-Financial Convenants (NFCs), including employment policy and brand integrity.
Tata Motors took an oath to preserve Iveco’s corporate identity. This will include its brands, logos and trademarks. Tata Motors group will also avoid any plant closures related to the acquisition during the NFC period.
The organization will make sure that the existing employee rights, pensions and agreements will remain untouched.
Timeline and Industry Impact
Once completed, he acquisition will close by the second quarter of 2026 expectedly. The company will mark itself as a dominating global player in the commercial vehicle platform, which can compete with industry tycoons such as Daimler and Volvo.
