Tata Motors Acquires Iveco Group for €3.9 Billion

Tata Motors has acquired control of Italy's Iveco Group in a deal valued at approximately €3.9 billion, establishing itself as the world's fourth-largest commercial vehicle manufacturer by volume. The acquisition provides the Indian automotive company with access to advanced driver assistance systems, software-driven vehicle technology, and diverse powertrains including hydrogen, electric, and LNG.

The tender offer closed on October 26 with provisional results showing that 238.16 million common shares, or 87.8%, were tendered. Including treasury stock, Tata Motors holds an 89.6% economic interest, comfortably exceeding the 80% threshold required for the acquisition. To secure this result, Tata Motors raised its offer from €14.10 to €14.40 per share on October 9 after facing opposition from activist investor Petrus Advisers, who claimed the bid undervalued the company.

Iveco will delist from the Milan exchange within one to two months and become a subsidiary of Tata Motors, though it will maintain its headquarters in Turin. The combined entity expects annual sales of over 540,000 units and revenues of approximately €22 billion. Natarajan Chandrasekaran, Chairman of Tata Sons, will join the Iveco board as chairperson. This move aligns with a broader strategy to reach $100 billion in total auto revenue by FY31, with the commercial vehicle segment targeted to contribute $40 billion.