Tata Motors has reached a definitive agreement to acquire the commercial vehicle operations of Iveco Group in an all‑cash EUR 3.8 billion transaction, excluding Iveco’s defence business. The offer will be made through a wholly owned subsidiary, contingent upon completion of the defence‑unit separation, which will be acquired by Italian defense and space company Leonardo.
Iveco Group’s board has unanimously recommended the offer, which consists of EUR 14.10 per share (cum‑dividend), plus an extraordinary dividend of approximately EUR 5.5–6.0 per share, tied to the proceeds from selling the defence unit. Exor N.V., holding 27.06 percent of shares and 43.11 percent of voting rights, has committed to tender its stake.
Upon completion—which is expected in the first half of 2026, provided the defence sale closes by 31 March 2026 (or via spin‑off by 1 April)—the combined entity is projected to generate about 540,000 vehicle sales annually, with revenues around EUR 22 billion distributed roughly 50 percent Europe, 35 percent India, 15 percent Americas. The deal creates a global commercial vehicle player with minimal overlap in product or geography.
Tata Motors has assured no planned workforce reductions or plant closures for at least two years post‑closing. Iveco’s headquarters will remain in Turin, Italy, and all brands under its umbrella—such as IVECO, FPT Industrial, IVECO BUS, ASTRA, and Heuliez—will operate unchanged. Independent board members will oversee compliance with non‑financial covenants covering employees, capital expenditure, and strategic continuity.
This acquisition follows Tata’s demerger of its commercial vehicle business and is part of a broader vision to build a global sustainable mobility leader. In FY 24, Tata Motors posted revenues of approximately USD 44 billion, with operations spanning India, the UK, South Korea, Thailand, and Indonesia, and markets across Africa, the Middle East, Southeast Asia, and Latin America.