Tata Motors to Acquire Iveco Group, Creating a Global Commercial Vehicle Powerhouse
#CommercialVehicles #Iveco #Manufacturing #Acquisition #TataMotors"This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations we are unlocking new avenues for operational excellence, product innovation and customer-centric solutions.” - Girish Wagh, Executive Director, Tata Motors
August 2025 : Tata Motors Limited and Iveco Group N.V., a European leader in commercial vehicles, have recently announced a definitive agreement for Tata Motors to acquire Iveco Group. The strategic move is set to create a new global champion in the commercial vehicles sector, bringing together complementary strengths and a shared vision for sustainable mobility.
The acquisition will be conducted through an all-cash voluntary tender offer made by a Tata Motors-owned entity for all common shares of Iveco Group, following the separation of Iveco's defense business. The offer price is set at EUR 14.1 per share, valuing the entire deal at approximately €3.8 billion, excluding the defense business.
This combination is expected to unlock significant value by merging two businesses with highly complementary product portfolios and virtually no overlap in their geographic footprints. The new entity will have a combined annual sales volume of over 540,000 units and revenues of approximately €22 billion (over INR 2,20,000 crore), with a balanced revenue split across Europe, India, and the Americas.
Natarajan Chandrasekaran, Chairman, Tata Motors, highlighted the strategic logic behind the acquisition. "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.”
Both companies emphasize that the integration process will preserve each group's industrial footprint and employee communities. Girish Wagh, Executive Director, Tata Motors, stated "This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations we are unlocking new avenues for operational excellence, product innovation and customer-centric solutions.” Olof Persson, CEO, Iveco Group, added that joining forces with Tata Motors will "accelerate innovation in zero-emission transport, and expand our reach in key global markets."
The completion of the offer is contingent on the successful separation of Iveco Group’s defense business. The deal marks a major step for both companies as they aim to lead the industry in delivering innovative and sustainable transport solutions.
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