Tata Motors to acquire Iveco’s truck business for €3.8 billion, its biggest acquisition to date

Tata Motors said late on Wednesday that it has reached an agreement with Italy’s Iveco to acquire its trucking business for a deal that values Iveco’s trucking business at about €3.8 billion, making it the biggest acquisition by deal size the homegrown maker of passenger and commercial vehicles has done, surpassing the $2.23 billion it paid for acquiring Jaguar Land Rover in 2008.

As part of the agreement, Tata Motors said it will launch a tender offer to acquire Iveco’s shares for €14.1 per share. The deal, however, is conditional, subject to the separation of Iveco’s defence business, for which it has reached an agreement with Leonardo, which is backed by the Italian state, for €1.7 billion, including debt. Iveco’s board has approved the offer, and also exhorts all Iveco shareholders to vote for the deal.

Exor, the largest shareholder of Iveco, has also agreed to hand over its 27.06% of Iveco Group’s common shares and 43.11% of all voting rights to Tata Motors, to support the deal. Exor is the publicly-listed investment arm of Italy’s Agnelli family—whose patriarch Giovanni Agnelli founded Fiat, and who owns significant stakes in Ferrari, Stellantis, and the Juventus Football Club, among others.

The deal is expected to close in the first half of 2026, and is also subject to obtaining the required merger control, foreign direct investment, EU Foreign Subsidies Regulation and financial regulatory clearances. The offer will be made by TML CV Holdings, a new limited liability company to be incorporated under Dutch law, which will be a wholly-owned—directly or indirectly—subsidiary of Tata Motors. Tata Motors said it does not envisage any reduction in the workforce of Iveco Group as a direct consequence of the deal.

The two companies said in a statement that the offer would bring together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity.

The combined entity will have a significant global presence and sales of over 5,40,000 units per year. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of more than ₹2.2 lakh crore, split across Europe, India, and the Americas, with opportunities in emerging markets in Asia and Africa.

Iveco’s acquisition also comes at a time when Tata Motors is in advanced stages of demerging its commercial vehicles business from its passenger vehicles business. “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe,” Natarajan Chandrasekaran, chairman, Tata Motors, said in a statement, adding that the combined group’s complementary businesses and greater reach will “enhance our ability to invest boldly.”