The acquisition, excluding Iveco’s Defence business, will be executed through a voluntary public cash tender offer. Tata Motors has proposed a cash consideration of €14.1 per share for the 271,215,400 common shares of Iveco Group N.V., aiming to acquire full control. The offer is contingent on a minimum acceptance level of 80%.
The strategic acquisition is designed to catapult Tata Motors into the league of truly global commercial vehicle manufacturers, significantly expanding its capabilities, reach, and resilience in a dynamic global market, according to a statement.
Together, Tata Motors and Iveco are expected to deliver annual sales of over 540,000 units and generate combined revenues of about €22 billion (Rs. 2.2 lakh crore), with a diversified geographic presence across Europe (50%), India (35%), and the Americas (15%).
“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,” said Natarajan Chandrasekaran, Chairman, Tata Motors. “The complementary businesses and greater reach will enhance our ability to invest boldly.”
Strategic benefits and global impact
The acquisition brings together two highly complementary commercial vehicle portfolios with minimal overlap in product lines and geographic presence, unlocking several strategic benefits. First, it enhances capabilities by providing access to emerging technologies and future-ready talent, thereby strengthening product and innovation pipelines. Second, it creates a robust global platform, enabling the combined entity to compete more effectively worldwide through a diversified customer base and strategic footholds in both emerging and mature markets. Third, the merger offers significant operational synergies by leveraging industrial, technological, and geographic complementarities to drive efficiency. Finally, it supports revenue diversification by broadening market presence, which helps mitigate the effects of industry cyclicality and ensures more stable cash flows.
Girish Wagh, Executive Director, Tata Motors, said: “This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. It not only expands our ability to serve diverse mobility needs globally but also reinforces our commitment to sustainable transport solutions aligned with global megatrends.”
Future-ready entity
The merged entity will be uniquely positioned to deliver sustainable, innovative mobility solutions by leveraging robust supplier networks, a wider product portfolio, and enhanced investment capabilities. It also aims to capitalise on Iveco’s successful powertrain business, FPT, to drive further innovation.
Olof Persson, CEO of Iveco Group, said: “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets. This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”
Iveco Group has shown consistent financial performance in recent years, with reported turnover (including its Defence division) of €15.2 billion in CY2024, €15.9 billion in CY2023, and €14.3 billion in CY2022.