Tata Motors moves closer to Iveco acquisition after Italian regulator clears offer document

Tata Motors has taken another significant step towards acquiring Italian commercial vehicle manufacturer Iveco Group, with Italy's securities market regulator Consob approving the offer document for its voluntary tender offer.

The approval allows the proposed acquisition process to move into the shareholder acceptance stage. Iveco shareholders will be able to tender their shares between September 7 and October 26, unless the offer period is extended, Tata Motors said in a regulatory filing on September 4.

TML CV Holdings B.V., an indirect wholly owned subsidiary of Tata Motors, received Consob's approval for the offer document on September 3. The clearance comes after Tata Motors secured the sector-specific regulatory approvals required for the transaction earlier this week.

Under the proposed offer, Tata Motors will offer €14.10 for each Iveco common share, including dividend. Shareholders who accept the offer during the initial acceptance period are expected to receive payment on October 30, subject to any extension in the timeline.

The acceptance window may also reopen for five trading days, from November 2 to November 6, if the conditions specified under applicable laws are met. In such a scenario, settlement for shares tendered during the reopened period is scheduled for November 13.

The Consob approval marks an important milestone in Tata Motors' plan to acquire Iveco, a transaction that would strengthen the Indian automaker's presence in the global commercial vehicle market. The acquisition is being carried out through TML CV Holdings Pte. Ltd. and its wholly owned Dutch subsidiary, TML CV Holdings B.V.

Earlier this week, Tata Motors said it had obtained all the necessary prior approvals under the applicable sectoral regulatory framework. These included clearances from the UK's Financial Conduct Authority, the Bank of Spain and the European Central Bank concerning changes in control and indirect qualifying holdings in financial services businesses linked to Iveco.

Consob's approval of the offer document under Italian securities regulations sets out the framework for the next stage of the transaction. The document will provide shareholders with detailed information on the terms and conditions of the offer, as well as the process for tendering their shares.

Tata Motors said further details regarding the publication and distribution of the approved offer document would be announced separately.