Tata Motors Shares Dip 0.5% as Company Announces ₹38,240 Cr Acquisition of Italy’s Iveco Group
Tata Motors to acquire Italy’s Iveco Group for ₹38,240 crore in its largest automotive deal. Shares dip 0.5% as markets react. Get key details here.
Tata Motors announces €3.8 billion acquisition of Iveco Group, marking its biggest global buyout since Jaguar Land Rover.
The Italian commercial vehicle maker Iveco Group N.V., excluding its defence branch, will be acquired by Tata Motors for €3.8 billion (about ₹38,240 crore), the company stated. This is the largest transaction in the automotive industry's history. The Indian car behemoth is making a significant leap towards worldwide development with its all-cash deal.
In early trading on Thursday, Tata Motors' stock was down 0.5% to ₹665.80, after plunging 3.5% the day before due to rumours of the upcoming acquisition. After the commercial vehicle division of Tata Motors was demerged, the acquisition is viewed as a strategic move.
🔍 Purchase Highlights: Tata Motors
- Target: Iveco Group N.V. (defence business excluded)
- Value of Deal: €3.8 billion (around ₹38,240 crore)
- Method of Payment: All-cash voluntary tender offer
- Closure is anticipated in April 2026 (pending regulatory permissions).
- A minimum of 80% of the 271.2 million common shares must be accepted.
The goal of the €14.1 per share offer is to acquire all of Iveco's stock, except the money made from the division's defence sale.
🏢 Strategic Perspective and Market Effect
Together, Tata Motors and Iveco intend to become a leading worldwide commercial vehicle company with annual sales of about €22 billion (₹2.2 lakh crore), split between:
- 50% in Europe
- India: 35 percent
- Americas: 15 percent
Natarajan Chandrasekaran, the chairman of Tata Motors, described the acquisition as a "logical next step" in the company's commercial vehicle roadmap, enhancing its standing in important markets and opening up daring investment opportunities in sustainable mobility.
Suzanne Heywood, the chair of Iveco, emphasised the "shared vision for sustainable transport" and gave stakeholders assurances about job security and continuity throughout Iveco's operations.
Long-Term Collaborations
The transaction is anticipated to:
- Boost commercial vehicles' capacity for innovation in electric and alternative fuels
- Use pooled supply networks to scale internationally.
- Conserve and include workers and industrial footprints
- Participate in developing markets in Asia and Africa
The combination is a "strategic leap" towards a commercial vehicle ecosystem that is prepared for the future, according to Girish Wagh, executive director of Tata Motors.
Concerning the Iveco Group
Founded in June 2021 and based in Turin, Italy, Iveco Group N.V. creates and produces:
- Commercial buses and trucks
- Motors and engines
- Financial services for both consumers and dealers
- All of Iveco's non-defense verticals are part of the deal.
💼 Tata Group's Second-Largest Global Deal
This transaction ranks as the second-largest acquisition in Tata Group history, following the $12 billion Corus Group buyout in 2007, and exceeds the $2.3 billion Jaguar Land Rover acquisition by Tata Motors in 2008.
📊 Upcoming Financials
Tata Motors is set to report its Q1 FY26 earnings on August 8, 2025. Market participants will closely watch the financial outlook, especially in light of this major global acquisition.
