Tata Motors (India) acquires Iveco for 3.8 billion, maintaining factories and jobs

Iveco Group and Tata Motors have reached a strategic agreement that could completely transform the global commercial vehicle landscape. Both companies have announced a voluntary public takeover bid that includes the integration of their respective businesses, with the aim of forming a new, leading international player. The transaction, subject to a series of regulatory and financial conditions, is expected to close during the first half of 2026.

The offer will be made by a company wholly owned by Tata Motors and is priced at €14.1 per share in cash, excluding dividends associated with the sale of Iveco's defense business. The total transaction value is estimated at approximately €3.8 billion, excluding the net proceeds from the spin-off of the defense business, which is expected to close before March 31, 2026.

The agreement has the unanimous support of Iveco's Board of Directors and the irrevocable commitment of Exor, its main shareholder, which holds over 27% of the capital and over 43% of the voting rights. In addition, board members with treasury shares (representing an additional 1.39%) will also support the offer.

The combined entity will have annual sales of over 540,000 units and combined revenue of approximately €22 billion, with a balanced presence between Europe , India , and the Americas . This geographic distribution, along with the limited overlap in industrial capabilities, strengthens the complementarity of both companies, generating clear synergies in key areas such as technological innovation, electrification, and supply networks.

Factories and jobs will be maintained

The buyer has assured that it will maintain Iveco's headquarters in Turin, Italy , and has established a solid package of non-financial commitments, including the preservation of factories and jobs for at least two years. Furthermore, the European group's identity, corporate culture, and brands, as well as its investment plans and strategic lines, will be respected .

The transaction also seeks to enhance the capabilities of FPT Industrial's propulsion systems business and accelerate the development of sustainable solutions , particularly in the zero-emissions sector. According to IVECO CEO Olof Persson, "this partnership unlocks new opportunities to reach more markets, expand our product portfolio, and deliver greater long-term value."

Tata Motors' chairman, Natarajan Chandrasekaran, emphasized that the merger "will allow us to compete on a level playing field globally, with Europe and India as strategic pillars." For his part, the Indian group's CEO, Girish Wagh, emphasized that the agreement "reinforces our commitment to future mobility, focused on the customer and aligned with global sustainability trends."

Both parties expect to soon obtain the necessary authorizations from competition, foreign investment, and financial regulatory authorities. Following this, Iveco's extraordinary general meeting must approve the terms of the transaction. If all the planned deadlines are met, Iveco would be delisted from the Milan Stock Exchange after becoming a wholly owned subsidiary of Tata Motors.