Tata Motors mentioned on Wednesday that it had agreed to purchase Italian truck maker Iveco Group in a deal price 3.8 billion euros ($4.36 billion), after the Italian truckmaker individually agreed to promote its defence enterprise to Leonardo. As a part of the association, Tata Motors will launch an all-cash tender provide on Iveco’s shares, topic to the defence enterprise sale, at 14.1 euros per share. The Tata group auto main mentioned it had entered an settlement with Iveco Group to arrange a industrial automobiles group in a deal that can help the Mumbai-headquartered firm’s industrial automobile enterprise.
The tender provide represents a complete consideration of roughly 3.8 billion euros for Iveco Group, excluding Iveco’s defence enterprise, in line with Tata Motors.
The Iveco Group logged a reported turnover of 15,289 million euros in FY24 (together with the defence enterprise). Iveco Group NV designs, produces and sells vehicles, industrial automobiles, buses, and defence automobiles, by its varied companies. Along with powertrain functions, the group affords a spread of economic services and products to sellers and clients.
Iveco’s protection unit shall be separated earlier than the acquisition, at a deal worth of three.8 billion euros, equal to Rs 34,200 crore (ecxluding the defence unit).
The provide value is ready at Rs 14.1 euros (Rs 1,270) per share.
Iveco Group is a European industrial automobile and mobility firm.
Tata Motors additionally mentioned that the provide will “carry collectively two companies with extremely complementary product portfolios and capabilities and with considerably no overlap of their industrial and geographic footprints, making a stronger, extra diversified entity with a big international presence and gross sales of over c. 540k items per yr. Collectively, Iveco and the industrial automobile enterprise of Tata Motors may have mixed revenues of c. 22 billion euros (Rs 2,20,000 crore+) cut up throughout Europe (c.50 per cent), India (c.35 per cent) and the Americas (c.15 per cent) with engaging positions in rising markets in Asia and Africa.
The mixed group shall be higher positioned to spend money on and ship modern, sustainable mobility options by leveraging each provider networks to serve clients globally. It’s going to additionally unlock superior progress alternatives and create important worth for all stakeholders in a dynamic market, mentioned Tata Motors.
“By preserving every group’s industrial footprint and worker communities, this complementarity can also be anticipated to foster a clean and profitable integration course of,” Tata Motors added.
“It is a logical subsequent step following the demerger of the Tata Motors Business Automobile enterprise and can permit the mixed group to compete on a very international foundation with two strategic dwelling markets in India and Europe. The mixed group’s complementary companies and higher attain will improve our capability to speculate boldly. I stay up for securing the mandatory approvals and concluding the transaction within the coming months,” mentioned Natarajan Chandrasekaran, Chairman, Tata Motors.
Tata Motors mentioned the acquisition is predicted to help the Business Automobiles enterprise of Tata Motors with :
- Expanded capabilities
- The creation of a world participant
- Leveraged strengths
- Diversified portfolio
In the meantime, Italian state-backed group Leonardo has agreed to purchase Iveco’s IDV defence unit, giving the enterprise an enterprise worth of 1.7 billion euros. This transaction is predicted to shut in Q1 of 2026, topic to regulatory approvals.
Tata Motors share value
Earlier on Wednesday, Tata Motors shares ended 3.5 per cent decrease at Rs 668.4 piece on BSE.
Tata Motors vs Nifty 50 vs Nifty Auto
On the present stage, the Tata Motors inventory has declined 10.8 per cent in 2025 up to now, underperforming good points of 4.7 per cent and a couple of.6 per cent within the Nifty50 and Nifty Auto indices, respectively.
