Tata Motors set to acquire Italian truck maker Iveco: ET

Tata Motors set to acquire Italian truck maker Iveco: ET

Tata Motors is reportedly on the cusp of acquiring Italian truck maker Iveco, marking a significant move in the global automotive sector. The deal, valued at approximately $4.5 billion, could be announced as early as Wednesday, July 30, coinciding with Iveco Group's Q2 2025 financial results [1][2].

The proposed acquisition involves Tata Motors buying Exor's 27.1% stake in Iveco, which carries 43.1% of the voting rights. This move would shift control of the group and potentially allow Tata to acquire the remaining shares through a tender offer [2]. The transaction does not include Iveco's defense business, which is expected to be sold to Leonardo SpA separately [4].

The deal, if confirmed, would be Tata Motors' second-largest acquisition, following its purchase of Jaguar Land Rover in 2008. It is also the largest acquisition for Tata Motors to date [2]. The Italian company's shares surged by as much as 7.4% intraday on Tuesday, reflecting investor optimism about the potential transaction [2].

Iveco's decision to demerge its defense business aligns with the Italian government's demand to keep the business in local hands. This move paves the way for a deal with Tata for the rest of Iveco's business, which includes commercial trucks, powertrains, buses, and other specialty vehicles [4].

The boards of Tata Motors and Iveco are set to meet on Wednesday to approve the transaction, pending final negotiations and regulatory approvals [2]. The deal is expected to be routed through a Dutch entity fully owned by Tata Motors [2].

References:
[1] https://www.sustainable-bus.com/news/iveco-tata-bloomberg-deal-near/
[2] https://economictimes.indiatimes.com/industry/auto/auto-news/tata-motors-set-to-acquire-italian-truck-maker-iveco-for-4-5-billion-in-its-biggest-deal-to-date/articleshow/122982621.cms
[3] https://economictimes.indiatimes.com/industry/auto/auto-news/tata-motors-set-to-acquire-italian-truck-maker-iveco-for-4-5-billion-in-its-biggest-deal-to-date/articleshow/122982621.cms
[4] https://www.bloomberg.com/news/articles/2025-07-29/iveco-said-to-near-defense-commercial-deals-with-leonardo-tata