Iveco Coordinates with Italian Government on Tata and Leonardo Deals

Iveco is maintaining close coordination with the Italian government regarding the sale of its truck business to Tata Motors and its defense subsidiary to Leonardo, according to a source. The deals, valued at €3.8 billion and €1.7 billion, respectively, were announced last week.

Iveco is maintaining close coordination with the Italian government regarding the sale of its truck business to Tata Motors and its defense subsidiary to Leonardo, according to a source. The deals, valued at €3.8 billion and €1.7 billion, respectively, were announced last week.

Tata Motors Limited, a leading Indian automaker, has announced plans to acquire Iveco Group, a European manufacturer of commercial vehicles and mobility solutions. The deal, valued at approximately $4.3 billion (€3.8 billion), excludes Iveco's defense division and is expected to be finalized by March 31, 2026 [1]. Tata Motors will offer $16.09 (€14.1) per share in cash for all issued common shares of Iveco Group, representing a 22–25% premium over the company's three-month average share price ending July 17, 2025 [1].

The sale of Iveco's defense division to European defense and security company Leonardo is also part of the broader transaction. This division is expected to be sold for an enterprise value of $1.9 billion (€1.7 billion) [1]. The deal is subject to regulatory approvals and is expected to be complete by March 31, 2026 [1].

The Italian government has backed the deals, noting Tata Motors' pledge to maintain Italian jobs and keep Iveco's headquarters in Turin. However, unions and opposition leaders remain vocal about the potential job losses and the move of Exor's legal base to the Netherlands [2]. The Agnelli family, through Exor NV, is selling off Iveco Group NV, marking a historic shift from the truck-building legacy to high-tech and luxury investments [2].

The sale of Iveco is part of Exor's methodical exit from traditional industrial operations. The family has traded its historic industrial holdings for opportunities in luxury goods, healthcare, and technology [2]. Exor's diversified portfolio now includes stakes in luxury shoe brand Christian Louboutin, France's Institut Mérieux, Royal Philips NV, and Via Transportation, among others [2].

The deals highlight the strategic reality that heavy trucks and industrial vehicles are low-margin and capital-intensive, while passenger vehicles and SUVs offer higher global scale and profitability opportunities [2]. The Agnelli family retains a powerful stake in the global car industry through Stellantis NV, the automaker formed in 2021 from the merger of Fiat Chrysler Automobiles and PSA Group of France [2].

The transaction will be executed through a special purpose entity fully owned by Tata Motors. The deal has already received unanimous support from Iveco Group's Board of Directors, who are recommending that shareholders accept the offer [1]. Tata Motors has secured full financing for the acquisition through a consortium led by Morgan Stanley and MUFG Bank [1].

The merger is set to unite Tata Motors' commercial vehicle division with Iveco Group's global operations, combining annual sales of roughly 540,000 units and generating an estimated $25 billion (€22 billion) in combined revenue [1]. The new entity will have a revenue distribution across Europe (50%), India (35%), and the Americas (15%) [1].

The deals are expected to be completed by early 2026, pending regulatory clearances and the final separation of Iveco's defense business [1]. The parties have agreed that Iveco's headquarters will remain in Turin, and no plant closures or workforce reductions are expected for at least two years, as the two organizations integrate operations [1].

References:
[1] https://www.autoevolution.com/news/tata-motors-announces-43-billion-acquisition-of-iveco-group-255268.html
[2] https://moparinsiders.com/agnelli-family-shifts-gears-iveco-sale-marks-end-of-fiat-truck-era/