In a deal preparing to reshape the global commercial vehicle industry, Tata Motors announced its plan to obtain the Iveco Group in Italy for 3.8 billion euros in a deal of all inscriptions, creating a huge global player with great arrival, complementary capabilities, and a unified strategic vision.
The deal, which is jointly unveiled by Tata Motors and Iveco Group on July 30, will be implemented by displaying a voluntary tender by TML CV Holdings PTE LTD, a new entity fully owned by Tata Motors.
The offer targets all the shared shares of the Iveco Group after separating its defensive work, which is a frank condition for the continuation of the acquisition.
At the heart of the offer is the price of 14.1 euros per share, with the exception of the distribution of unusual profits ranging between 5.5 and 6.0 euros per share of the IVECO defense revenue. This represents a premium of 22-25 % on the average share price for a period of three months of 16.02 euros, modified to distribute profits. Without adjusting profits, the installment rises to 34-41 %.
IVECO Board of Directors unanimously recommended this offer, Exor NV – the largest shareholder in IVECO with 27.06 % of shares and 43.11 % of voting rights – underestimated irreversibly to give its share. Funding financing is fully guaranteed, as Tata Motors promised to complete the deal and strong support after birth for IVECO operations, employees and strategic guidance.
The deal excludes IVECO defense companies, whose value is estimated at 1.7 billion euros, and is expected to be sold separately by March 31, 2026. The extraordinary dividends of 5.5 will be paid to 6.0 euros per share to IVECO shareholders as part of these investments.
Tata Motors agreed to large -scale financial covenants, ensuring stability for two years after closing. This offer is subject to regulatory approvals including the control of integration, foreign direct investment, and the rules of foreign support for the European Union, with the expectation of completion in the first half of 2026.
The transaction aims to combine Tata Manufacturing, Innovation, European market strength in IVECO, advanced product squad, opening a large long -term growth and value. The two companies together will create a world champion for commercial cars in a position to drive emerging mobility trends.
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