Italy govt monitoring closely potential Iveco sale: Urso

Italy govt monitoring closely potential Iveco sale: Urso

Title: Italy's Government Monitoring Potential Iveco Sale Closely

Italy's government is closely monitoring the potential sale of Iveco, the Italian truck manufacturer, following reports of discussions between the Agnelli family and potential buyers, including Tata Motors. The Italian government has previously intervened in Iveco's sale, blocking a bid from Chinese firm FAW in 2021. This latest development has sparked interest and concern among stakeholders.

The Agnelli family's investment firm, Exor, is currently in talks with India's Tata Motors over a potential acquisition of a controlling stake in Iveco Group. The discussions are part of a broader process to divest Iveco's defence division, which has received offers from various parties, including a joint bid from Italian defence company Leonardo and Germany's Rheinmetall, and offers from Franco-German tank maker KNDS and arms company Czechoslovak Group (CSG) [1].

The potential sale of Iveco would not include its defence division, which is valued at up to €1.9 billion. Exor owns a 27.1% stake in Iveco, equating to 43.1% of the voting rights. The Italian government has indicated that any transaction involving Iveco would be scrutinised under its 'golden power' legislation, which allows it to influence deals that involve strategically important companies [2].

The news of these discussions has had an immediate impact on Iveco's stock value, which experienced a significant increase on the Milan stock exchange, closing 8.3% higher on 18 July. Italian trade unions have called for a meeting with Industry Minister Adolfo Urso to discuss the implications for the company's future.

The outcome of these talks could lead to a notable shift in the European automotive landscape. The Italian government's close monitoring and potential intervention underscore the strategic importance of Iveco to the country's industrial sector.

References
1. [1] https://auto.economictimes.indiatimes.com/amp/news/commercial-vehicle/tata-motors-in-negotiations-to-acquire-controlling-stake-in-iveco-from-agnelli-family/122767845
2. [2] https://www.just-auto.com/news/agnelli-family-iveco/