Tata Motors to Acquire Iveco’s Commercial Vehicle Business
Tata Motors has announced its biggest overseas acquisition in over a decade, signing a definitive agreement to acquire the commercial vehicle (CV) business of Italy’s Iveco Group in a landmark $4.36 billion (€3.8 billion) deal. The all-cash offer excludes Iveco’s defense business, which is being sold separately to Italian aerospace major Leonardo for €1.7 billion. Tata’s acquisition is contingent on the successful completion of that defense division sale, expected by early 2026.
The deal will be carried out via a voluntary public tender offer, and Tata has proposed €14.10 per share, a substantial premium over the average share price of Iveco. Shareholders are also to be paid a special defense business sale-linked dividend.
Through this transaction, Tata Motors will be able to substantially increase its global commercial vehicle business. The merged entity will hold a commanding annual sales position of more than 540,000 units with revenues in excess of €22 billion, with a dominant market presence in Europe, India, and the Americas.
This buyout eclipses Tata’s legendary 2008 Jaguar Land Rover (JLR) acquisition and almost equals the size of its $13 billion Corus Steel buyout, a big strategic move to become a global CV leader.
Tata has promised to preserve Iveco’s identity by having its headquarters in Turin and retaining jobs for a minimum of two years after the acquisition. The step is likely to increase synergies in EVs, hydrogen trucks, autonomous driving, and supply chain operations, enabling Tata to compete with international behemoths such as Daimler Truck and Volvo.
