Tata Motors will acquire Iveco Group in a €3.8B all-cash deal. Completion expected by 2026.
Tata–Iveco Deal Forms €22B Commercial Vehicle Giant
Tata Motors Limited (Tata) has agreed to acquire Iveco Group N.V. (Iveco) in an all-cash transaction valued at approximately €3.8 billion, marking one of the largest cross-border automotive deals in recent years. The acquisition, which excludes Iveco‘s defence business, will create a global commercial vehicle powerhouse with combined revenues of around €22 billion.
Under the deal, Tata will make a voluntary tender offer—through a newly created Dutch company—for all of Iveco’s outstanding common shares. The offer is priced at €14.1 per share in cash.
The transaction depends on Iveco first completing the separation of its defence division, which is scheduled to conclude by March 2026.
In addition, Iveco shareholders will receive an extraordinary dividend of €5.5–6.0 per share from the sale of the defence business. Together with the cash offer, this dividend lifts the total value of the deal to as much as a 25 per cent premium over Iveco’s recent average share price.
The acquisition will strengthen Tata‘s position in India and also Iveco‘s established presence in Europe and the Americas. With annual sales of roughly 540,000 units, the new group will be among the largest commercial vehicle manufacturers in the world.
“This is a logical next step following the demerger of Tata Motors’ commercial vehicle business and will allow the combined group to compete on a truly global basis,” said Natarajan Chandrasekaran, Chairman of Tata Motors.
Olof Persson, CEO of Iveco Group, added, “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, expand our reach in key global markets, and deliver long-term value to all stakeholders.”
Commitments and Next Steps
Iveco’s board of directors unanimously endorsed the offer, with the support of Exor N.V., the company’s largest shareholder, which holds 27.06 percent of Iveco’s shares and 43.11 percent of voting rights.
The companies have also agreed to a set of non-financial covenants to remain in place for at least two years after the deal closes. These include keeping Iveco’s headquarters in Turin, Italy, protecting employee rights, and safeguarding Iveco‘s brand and production sites.
Meanwhile, according to Iveco‘s official release, regulatory filings have already begun, and the transaction remains on track for completion in the second quarter of 2026, once Iveco’s defence operations are separated, a step scheduled to conclude by March 2026. After the acquisition closes, Iveco will be delisted from Euronext Milan and operate as a wholly owned subsidiary of Tata.
Advisors on the deal include Goldman Sachs for Iveco and Morgan Stanley for Tata, with legal counsel provided by Clifford Chance, De Brauw Blackstone Westbroek, and others.
